Suppose there are two consumers, A and B. There are two goods, X and Y. There is a TOTAL of 9 units of X and a TOTAL of 9 units of Y. The consumers' utility functions are given by: UA(X,Y) = 3X + Y %3D UB(X,Y) = X2 Y %3D For Each of the following allocations, answer True if it is Pareto Efficient, and False if it is not Pareto Efficient. [ Select ] Allocation A: Consumer A gets X = 7 and Y =6; Consumer B gets X = 2 and Y = 3. [ Select] Allocation B: Consumer A gets X = 6 and Y =7; Consumer B gets X 3 and Y = 2 %3D [ Select ] Allocation C: Consumer A gets X = 2 andY =0; %3D Consumer B gets X = 7 and Y = 9 %3D [ Select ] v Allocation D: Consumer A gets X = 1 andY =0; Consumer B gets X 8 and Y = 9 %3!

Suppose there are two consumers, A and B. There are two goods, X and Y. There is a TOTAL of 9 units of X and a TOTAL of 9 units of Y. The consumers' utility functions are given by: UA(X,Y) = 3X + Y %3D UB(X,Y) = X2 Y %3D For Each of the following allocations, answer True if it is Pareto Efficient, and False if it is not Pareto Efficient. [ Select ] Allocation A: Consumer A gets X = 7 and Y =6; Consumer B gets X = 2 and Y = 3. [ Select] Allocation B: Consumer A gets X = 6 and Y =7; Consumer B gets X 3 and Y = 2 %3D [ Select ] Allocation C: Consumer A gets X = 2 andY =0; %3D Consumer B gets X = 7 and Y = 9 %3D [ Select ] v Allocation D: Consumer A gets X = 1 andY =0; Consumer B gets X 8 and Y = 9 %3!

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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