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 3 units of berries and 8 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)12.50 B)19 C)7.50 D)9.50 E)None of the above.

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The Answer of 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 3 units of berries and 8 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)12.50 B)19 C)7.50 D)9.50 E)None of the above.

Xavier and Yvette Are the Only Two Persons on a Desert