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      Question

      Umar has the utility function U(b,w) = min

      (b,w) and Akshat has the utility function U(b,w) = bw. If we draw an Edgeworth box with b on the horizontal axis and w on the vertical axis and if we measure Umar’s consumptions from the lower left corner of the box, then the contract curve contains
      A A straight line running from the upper right corner of the box to the lower left. Correct Answer Incorrect Answer
      B A curve that gets steeper as you move from left to right Correct Answer Incorrect Answer
      C A straight line with slope ¼ passing through the upper right corner of the box Correct Answer Incorrect Answer
      D A curve that gets flatter as you move from left to right Correct Answer Incorrect Answer

      Solution

      Can be verified after drawing IC for both

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