Question: Q3. (4 points) Pareto Efficiency and the Utility Function. a) (2 points) Seven's preferences satisfy the following strict preference relations: (2 oranges, 2 apples) >

Q3. (4 points) Pareto Efficiency and the Utility Function. a) (2

points) Seven's preferences satisfy the following strict preference relations: (2 oranges, 2

Q3. (4 points) Pareto Efficiency and the Utility Function. a) (2 points) Seven's preferences satisfy the following strict preference relations: (2 oranges, 2 apples) > (2 oranges, 1 apple) (2 oranges, 1 apple) > (1 orange, 2 apples) (1 orange, 2 apples) > (2 oranges, 0 apples) (2 oranges, 0 apples) > (0 oranges, 2 apples) (0 oranges, 2 apples) > (1 orange, 1 apple) (1 orange, 1 apple) > (1 orange, 0 apples) (1 orange, 0 apples) > (0 oranges, 1 apple) (0 oranges, 1 apple) > (0 oranges, 0 apples) Seven's preferences are also transitive, complete and reflexive. Marcellus' preferences are the same as Seven's preferences. Suppose that Seven and Marcellus are the only agents of an exchange economy, and that the endowment of Seven is (1 orange, 1 apple) and the endowment of Marcellus is (1 orange, 1 apple). For this economy, please list all the allocations which are NOT Pareto efficient. (If all potential allocations are Pareto efficient, please answer " All potential allocations are P.E.")

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