Question

Use the following information to answer 31-35 Consider Jen, a consumer with preferences (U,H,F) log0.3F+0.7logH, where...

Use the following information to answer 31-35

Consider Jen, a consumer with preferences (U,H,F) log0.3F+0.7logH, where H is the quantity of housing and F is the quantity of food (per month).

Suppose that her employer simply gave Jen the dollar cost you found in Q32 as a lump sum (instead of subsidized food). Jen’s new optimal consumption bundle should be

A.

(210F, 90H)

B.

(160F, 85H)

C.

(150F, 100H)

D.

(115F, 115H)

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