Mika spends all of her income on pizza and gasoline. Suppose Mika is presented with two options: A and B. Option A will subsidize gasoline by decreasing its price by 50%. Option B will increase Mika's income by the cost of the subsidy in Option A. Which of the following must be true?
A) Mika will always strictly prefer Option A to Option B.
B) Mika will always strictly prefer Option B to Option A.
C) Mika will never prefer Option A to Option B.
D) Mike will never prefer Option B to Option A.

Question

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The Answer of Mika spends all of her income on pizza and gasoline. Suppose Mika is presented with two options: A and B. Option A will subsidize gasoline by decreasing its price by 50%. Option B will increase Mika's income by the cost of the subsidy in Option A. Which of the following must be true?
A) Mika will always strictly prefer Option A to Option B.
B) Mika will always strictly prefer Option B to Option A.
C) Mika will never prefer Option A to Option B.
D) Mike will never prefer Option B to Option A.

Mika Spends All of Her Income on Pizza and Gasoline