Refer to Scenario 16.2. Is the current distribution Pareto optimal?

A) Yes.
B) No, as Sam could trade Sally a piece of candy for a tee shirt and both people would be better off.
C) No, as Sam could trade Sally a tee shirt for a piece of candy and both people would be better off.
D) Without the prices of each commodity it is impossible to determine if this distribution is Pareto optimal.


A

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