Xavier and Yvette Are the Only Two Persons on a Desert

question 50

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) =2N_y + B_y.Xavier is endowed with 5 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)13.50
• B)18.50
• C)15.50
• D)31
• E)None of the above.

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Definitions:

Affirmative Defense

A defense used in litigation where the defendant introduces evidence, which, if found to be credible, will negate criminal or civil liability, even if it is proven that the defendant committed the alleged act.

Breach of Contract

A violation of any of the agreed-upon terms and conditions of a binding contract, without lawful excuse.

Forum Selection Clause

A contractual provision that determines the location and jurisdiction where disputes arising under the contract will be resolved.

Confession of Judgment

A legal agreement where a debtor agrees that a creditor may obtain a judgment against them without a trial.