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Xavier and Yvette Are the Only Two Persons on a Desert

question 42

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Xavier and Yvette are the only two persons on a desert island.There are only two goods, nuts and berries.Xavier's utility function is U(Nx, Bx) = NxBx.Yvette's utility function is U(Ny, By) = 2Ny + By.Xavier is endowed with 3 units of berries and 8 units of nuts.Yvette is endowed with 6 units of berries and 8 units of nuts.In a competitive equilibrium for this economy, how many units of berries does Xavier consume?


Definitions:

Flat Affect

A severe reduction in emotional expressiveness, with individuals often displaying minimal facial expressions or vocal tone variability.

Inappropriate Affect

A clinical symptom where an individual's emotional expression is incongruent with the situation or their internal state.

Alogia

A symptom of schizophrenia and other psychotic disorders characterized by a significant reduction in the amount of speech.

Manic Disorder

is often referred to as part of bipolar disorder, characterized by periods of extremely elevated mood, energy, and unusual activity levels.

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