# Question: 10 in an exchange economy the set of feasible pareto...

###### Question details

10. In an exchange economy, the set of feasible, Pareto optimal
allocations for Omar and Marlo is given by

the equation x2= 2x1. Supposing endowments of ωo= {8, 4} and ωm=
{1, 5} for Omar and Marlo

respectively, and the equilibrium prices of each good are the same,
what is Omar’s optimal amount of

good 2?

(a) 4

(b) 8

(c) 1

(d) 2

Answer B

could you please explain?