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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