Question

5. Sally likes peanut butter and jelly together in her sandwiches. However, Sally is very particular about the proportions of peanut butter and jelly. Specifically, Sally likes 2 scoops of jelly with each 1 scoop of peanut butter. The cost of "scoops" of peanut butter and jelly are $0.50 and $0.20, respectively. Sally has $9 each week to spend on peanut butter and jelly. (You can assume that Sally's mother provides the bread for the sandwiches.) If Sally is maximizing her utility subject to her budget constraint, how many scoops of peanut butter and jelly should she buy?

Answer 1

U= min CJ, 2P) J = 2p Budget : o.s J + 0.2 P= 9 O.Sp to 2 J = 9 O.SP to. 2 (2p) = 9 P= 9 = 10 0.9 J = 2010) = 20 Scoops of Jelly = 20 Scoops of peanut buttes = 10