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Question 1: Sonja and Levi live on Classy Island. There are two things to consume on Classy Island: Oysters (O) and glasses of Champagne
Question 1: Sonja and Levi live on Classy Island. There are two things to consume on Classy Island: Oysters (O) and glasses of Champagne (C). Below are two different scenarios that describe Sonja's and Levi's preferences over Oysters and glasses of Champagne. Levi's Utility: (Sonja likes Oysters and Champagne equally.) (Levi likes Oysters and Champagne equally.) Scenario (A) Sonja's Utility: Us = 0 + C UL=0+C Scenario (B) Sonja's Utility: Levi's Utility: Us = C UL=0+C (Sonja likes only Champagne.) (Levi likes Oysters and Champagne equally.) In each scenario, there are 50 Oysters and 50 glasses of Champagne available to consume. For each scenario, answer the following questions. [40 marks in total]
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