Final answer:
Laila's consumer problem is to maximize her utility function U(R, C) = 102 with a budget of $90, spent on Meat Ribs (R) and Chicken wings (C). Without a specific utility function, the optimal bundle and demand function for ribs cannot be calculated, nor can we definitively characterize the solution or determine if ribs are a normal or inferior good.
Step-by-step explanation:
Laila's consumer problem consists of maximizing her utility given her budget restraint. In mathematical terms, she wants to maximize her utility function U(R, C) = 102 subject to her budget constraint, which is $90. She can spend her income on Meat Ribs (R) priced at $10 per slab and Chicken wings (C) at $5 per piece.
To determine Laila's optimal bundle, we set up the following equations based on her budget constraint:
Since the utility function is not specified beyond a constant, it indicates perfect substitutes or fixed proportion preferences. Without a specific functional form that describes her preferences, we cannot calculate the exact optimal bundle or the demand function for ribs or chicken.
An interior solution would occur where both goods are consumed in positive quantities. A boundary solution would occur if Laila spends all her income on one good. Since we lack the functional form of utility, we cannot conclusively state the type of solution or the conditions satisfied without additional information.
Ribs would generally be considered a normal good if an increase in income leads to an increase in consumption of ribs. Without the utility function's shape, we cannot assure ribs' status as a normal or inferior good for Laila; it depends on her individual preferences.