Ms Laura Mussel's Preferences Between Golf and Tennis Are Represented

Ms. Laura Mussel's preferences between golf and tennis are represented by U(g, t) = gt, where g is the number of rounds of golf and t is the number of tennis matches she plays per week. She has $24 per week to spend on these sports. A round of golf and a tennis match each cost $4. She used to maximize her utility subject to this budget. She decided to limit the time she spends on these sports to 16 hours a week. A round of golf takes 4 hours. A tennis match takes 2 hours. As a result of this additional constraint on her choice,

A) she plays 1 less round of golf and 1 more tennis match each week.
B) she plays more golf and less tennis, but can't say how much.
C) her choices and her utility are unchanged.
D) she plays 2 less rounds of golf and 3 more rounds of tennis per week.
E) There is too little information to tell about her choices.

Correct Answer:

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