Xavier and Yvette Are the Only Two Persons on a Desert

question 15

Multiple Choice

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(N_x, B_x) = N_xB_x.Yvette's utility function is U(N_y, B_y) = 5N_y + B_y.Xavier is endowed with 4 units of berries and 13 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?

• A)37.50
• B)69
• C)34.50
• D)32.50
• E)None of the above.

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Definitions:

Gibbon

A type of small ape known for its arboreal lifestyle and long arms, native to the forests of Southeast Asia.

Orangutan

A large arboreal great ape native to Indonesia and Malaysia, known for its reddish-brown hair, long arms, and intelligent behavior.

Bonobo

A species of great ape known for its peaceful behavior, residing in the Democratic Republic of Congo and closely related to the chimpanzee.

Primate Visual System

The specialized set of adaptations and structures in primates' eyes and brains that allow for acute visual perception, including depth perception and color vision.