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Suppose the Economics Department Has a Graduation Party for Its

Question 17

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Suppose the Economics Department has a graduation party for its students but as a final test they must show they have learned something about trade.The men are given food when they walk in and the women are given drink.Suppose they have identical preferences where food and drink provide utility U = FαDβ.The exchange would be such that


A) both would be guaranteed to be better off than when they entered.
B) both would be guaranteed to be at least as well off as when they entered.
C) the men would end up with more.
D) the women would end up with more.

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