1. Aisling eats sandwiches for lunch. For every 2 slices of bread (B), she requi

Question

1. Aisling eats sandwiches for lunch. For every 2 slices of bread (B), she requires 3 slice of turkey (T). An additional slice of bread without an additional 3/2 slices of turkey does not make her better or worse off. Similarly, an additional slice of turkey without an additional 2/3 of a slice of bread does not make her better or worse off. Aisling has $14 to spend on bread and turkey, each slice of bread costs 50 cents, and each slice of turkey costs 25 cents. Her utility function is ______ and her optimal bundle is ______.

a. U=min(2B,3T); 14 slices of bread and 21 slices of turkey

b. U=min(3B,2T); 14 slices of bread and 21 slices of turkey

c. U=min(2B,3T); 16 slices of bread and 24 slices of turkey

d. U=min(3B,2T); 16 slices of bread and 24 slices of turkey

Explanation / Answer

C is right answer. She needs minimum 2 bread (2B) and 3 slices of Turkey (3T).16(.50)=8 and 24(.8)=6 and 8+6=14

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