Suppose that Paul and David from Problem 7 have utility functions U = 4AP + OP and U = AD + 5OD, respectively, where AP and OP are Paul's consumptions of apples and oranges and AD and OD are David's consumptions of apples and oranges. The total supply of apples and oranges to be divided between them is 16 apples and 16 oranges. The "fair" allocations consist of all allocations satisfying
A) AD = AP and OD = OP.
B) 8AP + 2OP is at least 80 and 2AD + 10OD is at least 96.
C) 4AP + OP is at least 80 and 2AD + 5OD is at least 96.
D) AD + OD is at least 16 and AS + OS is at least 16.
E) 4AP + OP is at least AD + 5OD and AD + 5OD is at least 4AP + OP.
Correct Answer:
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