A Small Economy Has Only Two Consumers, Harold and Irene

Multiple Choice

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.