Multiple Choice
Suppose that Paul and David have utility functions U = 4A P + O P and U = A D + 5O D, respectively, where A P and O P are Paul's consumptions of apples and oranges and A D and O D are David's consumptions of apples and orange.The total supply of apples and oranges to be divided between them is 20 apples and 14 oranges.The "fair" allocations consist of all allocations satisfying the following conditions.
A) 4AP + OP is at least 94 and 2AD + 5OD is at least 90.
B) AD + OD is at least 17 and AS + OS is at least 17.
C) AD = AP and OD = OP.
D) 8AP + 2OP is at least 94 and 2AD + 10OD is at least 90.
E) 4AP + OP is at least AD + 5OD and AD + 5OD is at least 4AP + OP.
Correct Answer:

Verified
Correct Answer:
Verified
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