Answered
Xavier and Yvette are the only two persons on a desert island.There are only two goods, nuts and berries.Xavier's utility function is U(Nx, Bx) NxBx.Yvette's utility function is U(Ny, By) 2Ny By.Xavier is endowed with 5 units of berries and 13 units of nuts.Yvette is endowed with 6 units of berries and 8 units of nuts.In a competitive equilibrium for this economy, how many units of berries does Xavier consume?
A) 13.50
B) 18.50
C) 15.50
D) 31
E) None of the above.
On Jun 07, 2024