Suppose there are two consumers A and B and two goods X and Y m Consumer A's utility function is given by Ua(x,y) X Y Consuner B's utility function is given by Ub 2X Y Consumer A's initial endowment is X 4 and Y 0 Consumer B's initial endowment is X 4 and Y 8 Which of the following allocation of X is not in the core All of the above is in the core rhe initial allocation is Pareto efficient m, so the core is empty A gets 0 and X and 5 of Y B get 8 units of X and 3 units of Y A gets 1 unit of X and 4 units of Y B gets 7 units of X and 4 units of Y A gets 0 units of X and 6 units of Y B gets 8 units of X and 2 units of Y

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Question: Suppose there are two consumers A and B and two goods X and Y m. Consumer A's utility function is given by Ua(x,y) =X+Y. Consuner

Suppose there are two consumers A and B and two goods X and Y m. Consumer A's utility function is given by Ua(x,y) =X+Y. Consuner B's utility function is given by Ub = 2X + Y. Consumer A's initial endowment is X = 4 and Y = 0. Consumer B's initial endowment is X =4 and Y= 8. Which of the following allocation of X is not in the core?

All of the above is in the core
rhe initial allocation is Pareto efficient m, so the core is empty
A gets 0 and X and 5 of Y; B get 8 units of X and 3 units of Y
A gets 1 unit of X and 4 units of Y; B gets 7 units of X and 4 units of Y
A gets 0 units of X and 6 units of Y; B gets 8 units of X and 2 units of Y

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