Suppose That Paul and David Have Utility Functions U

question 18

Multiple Choice

Suppose that Paul and David have utility functions U = 3A_P + O_P and U = A_D + 2O_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 10 apples and 20 oranges.The "fair" allocations consist of all allocations satisfying

• A)A_D = A_P and O_D + O_P.
• B)6A_P + 2O_P is at least 50 and 2A_D + 4O_D is at least 50.
• C)3A_P+ O_P is at least 50 and 2A_D + 2O_D is at least 50.
• D)A_D + O_D is at least 15 and A_S + O_S is at least 15.
• E)3A_P + O_P is at least A_D + 2O_D and A_D + 2O_D is at least 3A_P + O_P.

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