17. Eva and Ollie live in an isolated valley and trade with no one but each other. They consume only cantaloupes and grapefruits. Irene has an initial endowment of 10 cantaloupes and 15 grapefruits. Orville has an initial endowment of 14 cantaloupes and 26 grapefruits. For Irene, the two goods are perfect substitutes, one for one. For Orville, they are perfect complements, one for one. At all Pareto efficient allocations.

a. Eva must consume at least 17 grapefruits.

b. Eva must consume at least 13 grapefruits.

c. Ollie must consume 21.50 cantaloupes.

d. the slopes of the two traders’ indifference curves are the same.

e. Ollie must consume all of the cantaloupes.

23. Arturo and Belen consume only two goods, X and Y. They have strictly convex preferences and no kinks in their indifference curves. At the initial allocation, the ratio of Arturo’s marginal utility of X to his marginal utility of Y is A and the ratio of Belen’s marginal utility of X to his marginal utility of Y is B, where A < B. The competitive equilibrium price ratio is p_x/p_y = C.

a. C > B.

b. C < A.

c. C = A.

d. C = B.

e. A < C < B.