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. O E. Answers (C) and (D) are both true,
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. O E. Answers (C) and (D) are both true,
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter6: Consumer Choices
Section: Chapter Questions
Problem 1SCQ: Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can...
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