Ms.Laura Mussel's preferences between golf and tennis are represented by U(g, t)= gt, where g is the number of rounds of golf and t is the number of tennis matches she plays per week.She has $24 per week to spend on these sports.A round of golf and a tennis match each cost $4.She used to maximize her utility subject to this budget.She decided to limit the time she spends on these sports to 16 hours a week.A round of golf takes 4 hours.A tennis match takes 2 hours.As a result of this additional constraint on her choice,

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Since Ms. Laura Mussel is limited to 16 hours a week, she has to decide how many rounds of golf and how many tennis matches she can fit into that time. A round of golf takes 4 hours, so the maximum number of rounds she can play is 4. Similarly, a tennis match takes 2 hours, so the maximum number of matches she can play is 8.

To maximize her utility subject to this time constraint and budget constraint, she should allocate her $24 to get the same marginal utility per dollar from both golf and tennis. Since golf and tennis both cost $4 per round/match, this means she should play 3 rounds of golf and 3 tennis matches, which will use 3*4 + 3*2 = 18 hours of her time.

Since she is limiting her time to 16 hours a week, she can't play both 3 rounds of golf and 3 tennis matches. To play less golf and more tennis, she should play 2 rounds of golf and 4 tennis matches, which will use 2*4 + 4*2 = 12 hours of her time. This will give her the same marginal utility per dollar from both sports, but she will have to give up playing one round of golf to fit in the extra tennis match. Therefore, the answer is A: she plays 1 less round of golf and 1 more tennis match each week.

MsLaura Mussel's Preferences Between Golf and Tennis Are Represented by U(g