A small economy has only two consumers, Harold and Irene.Harold's utility function is U(x, y)= x + 50y^1/2.Irene's utility function is U(x, y)= x + 5y.Harold is endowed with 500 units of x and 60 units of y.They make trades to reach a Pareto optimal allocation of resources in which both persons consume positive amounts.How much y does Harold consume? A)50 units B)25 units C)28 units D)23 units E)There is not enough information to determine how much y he will consume.

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The Answer of A small economy has only two consumers, Harold and Irene.Harold's utility function is U(x, y)= x + 50y^1/2.Irene's utility function is U(x, y)= x + 5y.Harold is endowed with 500 units of x and 60 units of y.They make trades to reach a Pareto optimal allocation of resources in which both persons consume positive amounts.How much y does Harold consume? A)50 units B)25 units C)28 units D)23 units E)There is not enough information to determine how much y he will consume.

A Small Economy Has Only Two Consumers, Harold and Irene