(Figure: Cereal and Pancakes V) Suppose That Elaina Has 1

Multiple Choice

(Figure: Cereal and Pancakes V) Suppose that Elaina has 1 pancake and 4 bowls of cereal, which gives her a marginal utility of pancakes of 20 and marginal utility of cereal of 5. Jose has 7 pancakes and 6 bowls of cereal, which gives him a marginal utility of pancakes of 6 and marginal utility of cereal of 18. Which of the following statements is (are) TRUE?

A) The allocation is Pareto-efficient.
B) Elaina and Jose would both be better off if Elaina traded 1 pancake for 1 bowl of Jose's cereal.
C) A Pareto improvement would be for Elaina to give Jose 2 bowls of cereal in exchange for 1 pancake.
D) Elaina and Jose would both be better off if Elaina traded 1/2 pancake for 1 bowl of Jose's cereal.