Use the following information to answer 31-35
Consider Jen, a consumer with preferences (U,H,F)=0.3LogF+0.7log H where H is the quantity of housing and F is the quantity of food (per month). Suppose Jen has a stipend of $1000/month which she uses to purchase food at a price of $3/unit and housing at a price of $7/unit.
Jen's utility-maximizing bundle of goods should be.
A. |
(240F, 40H) |
|
B. |
(170F, 70H) |
|
C. |
(100F, 100H) |
|
D. |
(140F, 60H) |
Ans.
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