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Question: please be careful z...

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please be careful z.

Suppose the Xavier values each apple at $1 and each banana at $2; Yolanda values each apple at $2 and each banana at $4; and Zoe value each apple at $2 and each banana at $1. Consider the following three allocations: Allocation 1: Xavier has 4 apples and 3 bananas, Yolanda has 2 apples and 2 bananas, and Zoe has 3 bananas and 4 apples. Allocation 2: Xavier has 3 apples and 4 bananas, Yolanda has 2 apples and 2 bananas, and Zoe has 4 bananas and 3 apples. Allocation 3: Xavier and Zoe have nothing, Yolanda has 9 apples and 9 bananas. Rank the three allocations according to the Pareto criterion. Allocation 1 Pareto dominates Allocation 2, but no other pair of allocations can be ranked No allocation Pareto dominates another. Allocation 3 Pareto dominates Allocation 1, but no other pair of allocations can be ranked. Allocation 1 Pareto dominates Allocation 2 and Allocation 3, and Allocation 3 Pareto dominates Allocation 2. Allocation 2 Pareto dominates Allocation 3, but no other pair of allocations can be ranked.

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