Pierre's friend Henri lives in a town where he has to pay 3 francs per glass of wine and 5 francs per loaf of bread.Henri consumes 5 glasses of wine and 4 loaves of bread per day.Bob has an income of $15 per day and pays $.50 per loaf of bread and $2 per glass of wine.If Bob has the same tastes as Henri and if the only thing that either of them cares about is consumption of bread and wine,

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Henri pays a total of 3*5 + 5*4 = 35 francs per day for his consumption. In terms of Bob's income, this is equivalent to $1.17 per day (using the exchange rate of 1 franc = $0.033). Bob, on the other hand, pays $2*5 + $0.50*4 = $11 per day for the same consumption. Therefore, Bob is worse off than Henri as he has to pay a higher proportion of his income for the same consumption.

Pierre's Friend Henri Lives in a Town Where He Has