A small economy has only two consumers, Zeke and Maude.Zeke's utility function is U(x, y) = x + 48y^1/2.Maude's utility function is U(x, y) = x + 4y.At a Pareto optimal allocation in which both individuals consume some of each good, how much y does Zeke consume?

A) 36
B) 12
C) 5
D) 10
E) We can't tell without knowing the initial endowments.

Pareto Optimal Allocation

An economic allocation where it is impossible to make any one individual better off without making at least one individual worse off.

Utility Function

A mathematical representation that assigns a level of utility or satisfaction to various combinations of goods and services consumed by an individual or society.

Consumers

Individuals or entities that use or consume goods and services produced within an economy.