Ken's Utility Function Is U(Q_K, W_K)=Q_KW_K and Barbie's Utility Function

question 30

Multiple Choice

Ken's utility function is U(Q_K, W_K) =Q_KW_K and Barbie's utility function is U(Q_B, W_B) =Q_BW_B.If Ken's initial endowment were 3 units of quiche and 7 units of wine and Barbie's endowment were 6 units of quiche and 7 units of wine, then at any Pareto optimal allocation where both persons consume some of each good,

• A)Ken would consume 3 units of quiche for every 7 units of wine.
• B)Ken would consume 9 units of quiche for every 14 units of wine that he consumes.
• C)Barbie would consume twice as much quiche as Ken.
• D)Barbie would consume 6 units of quiche for every 7 units of wine that she consumes.
• E)None of the above.

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Definitions:

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A mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.

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Occurring repeatedly or periodically.

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Unwanted, involuntary thoughts, images, or ideas that can be distressing or disturbing.

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