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

Suppose there are two consumers, A and B, and two goods, X and Y.Consumer A's utility function is given by: UA(X,Y) = X + Y.Consumer 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 allocations of X and Y is in the CORE?

A gets 8 units of X and 8 units of Y, and B gets 0 units of X and 0 units of Y.

None of the allocations are in the CORE.

A gets 0 units of X and 0 units of Y, and B gets 8 units of X and 8 units of Y.

A gets 0 units of X and 5 units of Y; B gets 8 units of X and 3 unit of Y.

A gets 1 units of X and 4 units of Y; B gets 7 units of X and 4 units of Y.

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