Q3 Q3-1: Given the definition of the Pareto improvement, an allocation x' does NOT Pareto improve allocation x if [FILL IN THIS BLANK] Q3-2: Consider the statement that "(1) All agents

in the economy are weakly better off under x' than x"! "Not (1)", i.e., that statement (1) is not true is equivalent to [FILL IN THIS BLANK] Q3-3: Consider the statement "(2) At least one agent in the economy is strictly better off under x' than x." "Not (2)" i.e., that statement (2) is not true is equivalent to [FILL IN THIS BLANK]/nQ3-4: Given the discussions above, an allocation x' does NOT Pareto improve allocation x if [CHOOSE FROM BELOW] (a) there exists an agent who is strictly worse off OR all agents are weakly worse off (b) there exists an agent who is strictly worse off AND all agents are weakly worse off (c) all agents are strictly worse off OR there exists an agent who is weakly worse off (d) all agents are strictly worse off AND there exists an agent who is weakly worse off Q3-5: Definition: We say an allocation x is NOT efficient if there exists an allocation x' that Pareto improves allocation x. This means that an allocation IS efficient if [CHOOSE AN OPTION FROM BELOW] (a) x Pareto improves all other allocations (b) x Pareto improves some allocation (c) there exists no allocation x' such that x' Pareto improves x Q3-6: Suppose there is only one good (good 1) and money (good 2) in this world, and there are two consumers, A and B. The willingness to pay (WTP) for the goods of consumer A and B is 100 JPY and 200 JPY, respectively. Consider allocation x in which consumer A is endowed with the good worth 300 JPY, while B is endowed with money amounting to $400. We can write this allocation x as {(1,300), (0, 400)}. Consider an allocation x' = {(0, m), (1, 700-m)} for some m in (0, 700). Find the necessary and sufficient condition on m such that x' is a Pareto improvement of x.