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Suppose That Paul and David Have Utility Functions U =

Question 10

Multiple Choice

Suppose that Paul and David have utility functions U = 4A 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 18 apples and 18 oranges.The fair allocations consist of all allocations satisfying the following conditions.


A) AD = AP and OD = OP.
B) 8AP + 2OP is at least 90 and 2AD + 6OD is at least 72.
C) 4AP+OP is at least 90 and 2AD + 3OD is at least 72.
D) AD = OD is at least 18 and AS + OS is at least 18.
E) 4AP + OP is at least AD +3OD and AD + 3OD is at least 4AP + OP.

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