Suppose That Paul and David Have Utility Functions U =

question 11

Multiple Choice

Suppose that Paul and David have utility functions U = 5A_P + O_P and U = A_D + 3O_D, respectively, where A_P and O_P are Paul's consumptions of apples and oranges and A_D and O_D are David's consumptions of apples and oranges.The total supply of apples and oranges to be divided between them is 14 apples and 14 oranges.The "fair" allocations consist of all allocations satisfying

• A)10A_P + 2O_P is at least 84 and 2A_D + 6O_D is at least 56.
• B)5A_P + O_P is at least 84 and 2A_D + 3O_D is at least 56.
• C)A_D + O_D is at least 14 and A_S + O_S is at least 14.
• D)A_D + A_P and O_D + O_P.
• E)5A_P + O_P is at least A_D + 3O_D and AD + 3O_D is at least 5A_P + O_P.

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Definitions:

Dual-Center Theory

The hypothesis that one area in the lateral hypothalamus is the “on” center, the initiator of eating, while another area in the ventromedial hypothalamus is the “off” center, the terminator of eating. Current evidence indicates that although these brain regions are crucial for eating, the regulation of eating also involves other circuits.

Lateral Region

An area situated at the side of an organ or structure within the body.

Hypothalamus

A small but crucial part of the brain's limbic system, involved in many functions, including hormone regulation, temperature control, and management of hunger and thirst.

Leptin

a hormone produced by fat cells that helps to regulate energy balance by inhibiting hunger.