Candy bars Bags of potato chips Quantity Total utility Quantity Total utility 10 8 16 2 14 3 18 3 18 4 19 4 21 5 20 5 23 Liz consumes two goods, candy bars and potato chips. Her budget is $4 per day. The price of a candy bar is $1.00 and the price of a bag of chips is 50 cents. Her utility is in the table above. For Liz to maximize her utility, what combination of candy bars and potato chips should she eat? O A. 2 candy bars and 4 bags of potato chips O B. 4 candy bars and 0 bags of potato chips OC. 1 candy bar and 5 bags of potato chips O D. 3 candy bars and 2 bags of potato chips O E. None of the above answers are correct.
Candy bars Bags of potato chips Quantity Total utility Quantity Total utility 10 8 16 2 14 3 18 3 18 4 19 4 21 5 20 5 23 Liz consumes two goods, candy bars and potato chips. Her budget is $4 per day. The price of a candy bar is $1.00 and the price of a bag of chips is 50 cents. Her utility is in the table above. For Liz to maximize her utility, what combination of candy bars and potato chips should she eat? O A. 2 candy bars and 4 bags of potato chips O B. 4 candy bars and 0 bags of potato chips OC. 1 candy bar and 5 bags of potato chips O D. 3 candy bars and 2 bags of potato chips O E. None of the above answers are correct.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 3SQP
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Transcribed Image Text:Bags of potato chips
Total utility
Candy bars
Quantity Total utility Quantity
1
10
1
8
2
16
2
14
3
18
3
18
4
19
4
21
20
23
Liz consumes two goods, candy bars and potato chips. Her budget is $4 per day. The price of a candy bar is $1.00 and the price of a bag of chips is 50 cents. Her utility is in the table above. For Liz to maximize her utility, what
combination of candy bars and potato chips should she eat?
O A. 2 candy bars and 4 bags of potato chips
O B. 4 candy bars and 0 bags of potato chips
OC. 1 candy bar and 5 bags of potato chips
O D. 3 candy bars and 2 bags of potato chips
O E. None of the above answers are correct.
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