Eduardo and Francisca participate in an economy that is in competitive equilibrium. Although they are unacquainted with each other, both purchase strawberries and champagne. Edouardo's utility function is U(s, c) = 2s + c, where s is the number of boxes of strawberries he consumes per month and c is the number of bottles of champagne. Francisca's utility function is U(s, c) = sc.
A) Francisca consumes equal amounts of strawberries and champagne.
B) Eduardo consumes more strawberries than champagne.
C) Francisca consumes twice as many bottles of champagne as boxes of strawberries.
D) Francisca consumes twice as many boxes of strawberries as bottles of champagne.
E) Eduardo consumes more champagne than strawberries.
Correct Answer:
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