Kens utility function is U(Q K, W K ) = Q K W K and Barbies utility function is U(Q B, W B ) = Q B W B. If Kens initial endowment were 5 units of quiche and 7 units of wine and Barbies endowment were 10 units of quiche and 7 units of wine and Barbie's endowment were 10 units of quiche and 7 units of wine, then at any Pareto optimal allocation where both persons consumed some of each good,
A) Ken would consume 15 units of quiche for every 14 units of wine that he consumed.
B) Barbie would consume 10 units of quiche for every 7 units of wine that she consumed.
C) Ken would consume 5 units of quiche for every 7 units of wine that he consumed.
D) Barbie would consume twice as much quiche as Ken.
E) None of the above.
Correct Answer:
Verified
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