Consider the case of a landlord and tenet. The landlord wants to get the highest price possible for his or her rental property, while the tenet wants to pay the lowest price possible. Suppose that for whatever reason the tenet has few available alternatives and thus agrees to pay the landlord an amount of rent the tenet considers “exploitive.” (a) Use an Edgeworth box like we discussed in class to depict this situation. Place “all other goods” on the vertical axes of the box and ”housing” on the horizontal axes. 

Hint: if the tenet thinks he or she is being exploited, would equilibrium occur higher up the tenet’s “utility hill” or further down it? While the tenet considers the rent he or she pays for the property to be exorbitant, the tenet has nevertheless agreed to meet the landlord’s demands. True or False: We can infer that the tenet is better off regardless of their complaints about the price. Briefly explain your answer