Alison is a traveling salesperson who drives many miles each day to visit her clients. She gets utility from the purchase of gasoline, but she doesn't care which brand of gasoline she consumes. Suppose she has a daily budget of $100 for gasoline and can purchase from two companies, PB and Noxxe. Today she notices that the price of a gallon of gas at PB is $2.50 and the price of a gallon of gas at Noxxe is $3.33. What is her optimal purchase of gas?
A) 40 gallons at PB and 30 gallons at Noxxe
B) none at PB and 30 gallons at Noxxe
C) 20 gallons at PB and 15 gallons at Noxxe
D) 40 gallons at PB and none at Noxxe
Correct Answer:
Verified
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