Simone likes peanut butter and jelly (PB&J) sandwiches. When Simone makes a PB&J sandwich she always uses 4 tablespoons of peanut butter and 2 tablespoons of jelly. Suppose that the price of peanut butter is $0.05 per tablespoon and that the price of jelly is $0.15 per tablespoon. Simone lives above a bakery and receives free day old bread from her baker friend. The amount of Simone's income spent on PB&J sandwiches is $8 a week. Which of the following statements is true? A. Simone's indifference curves for peanut butter and jelly are normal indifference curves. B. Simone's indifference curves for peanut butter and jelly are straight lines, since she always eats peanut butter and jelly in a particular combination. C. Simone's indifference curves for peanut butter and jelly each have a right angle, since peanut butter and jelly are perfect complements for Simone. D. Simone maximizes her utility from PB&J sandwiches by consuming 8 sandwiches a week. OE. Answers (C) and (D) are both true.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Simone likes peanut butter and jelly (PB&J) sandwiches. When Simone makes a
PB&J sandwich she always uses 4 tablespoons of peanut butter and 2
tablespoons of jelly. Suppose that the price of peanut butter is $0.05 per
tablespoon and that the price of jelly is $0.15 per tablespoon. Simone lives
above a bakery and receives free day old bread from her baker friend. The
amount of Simone's income spent on PB&J sandwiches is $8 a week. Which of
the following statements is true?
A. Simone's indifference curves for peanut butter and jelly are normal
indifference curves.
B. Simone's indifference curves for peanut butter and jelly are straight lines,
since she always eats peanut butter and jelly in a particular combination.
C. Simone's indifference curves for peanut butter and jelly each have a right
angle, since peanut butter and jelly are perfect complements for Simone.
D. Simone maximizes her utility from PB&J sandwiches by consuming 8
sandwiches a week.
OE. Answers (C) and (D) are both true.
Transcribed Image Text:Simone likes peanut butter and jelly (PB&J) sandwiches. When Simone makes a PB&J sandwich she always uses 4 tablespoons of peanut butter and 2 tablespoons of jelly. Suppose that the price of peanut butter is $0.05 per tablespoon and that the price of jelly is $0.15 per tablespoon. Simone lives above a bakery and receives free day old bread from her baker friend. The amount of Simone's income spent on PB&J sandwiches is $8 a week. Which of the following statements is true? A. Simone's indifference curves for peanut butter and jelly are normal indifference curves. B. Simone's indifference curves for peanut butter and jelly are straight lines, since she always eats peanut butter and jelly in a particular combination. C. Simone's indifference curves for peanut butter and jelly each have a right angle, since peanut butter and jelly are perfect complements for Simone. D. Simone maximizes her utility from PB&J sandwiches by consuming 8 sandwiches a week. OE. Answers (C) and (D) are both true.
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