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A small economy has only two consumers, Boris and Vanessa. Boris's utility function is U(x, y) = x + 16y 1/2 . Vanessa's utility function
A small economy has only two consumers, Boris and Vanessa. Boris's utility function is U(x, y) = x + 16y 1/2 . Vanessa's utility function is U(x, y) = x + 2y. Boris is endowed with 160 units of x and 60 units of y. They make trades to reach a Pareto optimal allocation of resources in which both persons consume positive amounts. How much y does Boris consume?
a. 32 units
b. 19 units
c. 14 units
d. 16 units
e. There is not enough information to determine how much y he will consume.
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