Problem
In a perfectly competitive economy, there are two individuals, A and B, and two goods, X and Y, each in fixed supply. Before trading commences A has no X and B has no Y. Under what circumstances will they be at the same point after trading? Will the outcome be Pareto efficient?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.