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Jane Spends $210 Per Month on Wine and Beer

Question 22

Multiple Choice

Jane spends $210 per month on wine and beer.Her utility function is given by TU = 100WB,where W represents the number of bottles of wine that she buys and B represents the number of cases of beer that she buys.If wine costs $10 per bottle and beer costs $15 per case,she will maximize utility by buying:


A) 10.5 bottles of wine and 7 cases of beer.
B) 2 bottles of wine and 3 cases of beer.
C) equal amounts of wine and beer.
D) 10 bottles of wine and 13.33 cases of beer.
E) none of the above.

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