A total of 50 units of good x and 40 units of good y must be divided between two consumers, Amy and Ben.
If amy consumes xA of good x, then ben consumen xB= 50-xA of good x. If amy consumen yA of good y, then ben consumen yB= 40- yA of good y.
Amy's utility function is UA(xA,yA)=xAyA. Ben's utility function is UB(xB,yB)=xB+yB
Which of the following (xA,yA) allocations represents a Pareto-improvement on an initial allocation that gives Amy the bundle (20,10) ?
A. (15,16)
B. (14,13)
C. (17,12)
D. (16,15)
