Multiple Choice
Ken's utility function is U(QK, WK) =QKWK and Barbie's utility function is U(QB, WB) =QBWB.If Ken's initial endowment were 6 units of quiche and 9 units of wine and Barbie's endowment were 12 units of quiche and 9 units of wine, then at any Pareto optimal allocation where both persons consume some of each good,
A) Ken would consume 18 units of quiche for every 18 units of wine that he consumes.
B) Barbie would consume 12 units of quiche for every 9 units of wine that she consumes.
C) Ken would consume 6 units of quiche for every 9 units of wine.
D) Barbie would consume twice as much quiche as Ken.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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