1. Evelyn is employed by a multinational company that has offices in New York and Galway. Her current net salary is 60 a month and she spends it all on food and housing. A unit of food costs 2 in New York and 3 in Galway while a unit of housing costs 6 in New York and 4 in Galway. Evelyn currently works in Galway and consumes 7.5 units of housing and 10 units of food. Her company wants her to move to New York and offers her a net salary of 65 in New York. Ignore all issues regarding currencies, quality of life and her consumption of other goods in answering the following questions. Assume that Evelyn's preferences for food and housing satisfy all the usual assumptions about preferences.

Will Evelyn be better off in New York or Galway or will she be equally well off in both cities? Explain clearly