In Problem 3, Professor Nightsoil's Utility Function Is U_N(B_N, P_N)

question 24

Multiple Choice

In Problem 3, Professor Nightsoil's utility function is U_N(B_N, P_N) and Dean Interface's utility function is U_I(B_I, P_I) . If Nightsoil's initial endowment is 3 bromides and 20 platitudes and if Interface's initial endowment is 5 bromides and 15 platitudes, then at any Pareto efficient allocation where both persons consume positive amounts of both goods,

• A) Interface consumes 7 platitudes.
• B) Nightsoil consumes the same ratio of bromides to platitudes as Interface.
• C) Interface consumes 4 bromides.
• D) Interface consumes 4 bromides
• E) Interface consumes 3 platitudes.

---

Definitions:

Worse Off

A situation or condition in which an individual or group is in a less favorable position than before.

Demand Curve

A graph showing the relationship between the price of a good and the amount of it that consumers are willing to purchase at various prices.

Levied

Imposed, typically referring to taxes, duties, or charges officially imposed by a government authority.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to provide, holding other factors constant.