Multiple Choice
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:
Verified
Correct Answer:
Verified
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