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 3 units of quiche and 7 units of wine and Barbie's endowment were 6 units of quiche and 7 units of wine, then at any Pareto optimal allocation where both persons consume some of each good,
A) Ken would consume 3 units of quiche for every 7 units of wine.
B) Ken would consume 9 units of quiche for every 14 units of wine that he consumes.
C) Barbie would consume twice as much quiche as Ken.
D) Barbie would consume 6 units of quiche for every 7 units of wine that she consumes.
E) None of the above.
Correct Answer:
Verified
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