The table below shows the quantities of toffee bars and bags of cashews that a consumer could consume over a 1-week period.
Toffee (bars) Cashews (bags)
TABLE 6-1
-Refer to Table 6-1.If the prices of toffee bars and bags of cashews are both $1 and this consumer has $7 per week to spend on these two snacks,how many of each will he/she purchase to maximize utility?

Question

The table below shows the quantities of toffee bars and bags of cashews that a consumer could consume over a 1-week period.
Toffee (bars) Cashews (bags)
  TABLE 6-1
-Refer to Table 6-1.If the prices of toffee bars and bags of cashews are both $1 and this consumer has $7 per week to spend on these two snacks,how many of each will he/she purchase to maximize utility?

Quizplus · Accepted Answer

To maximize utility, the consumer should allocate their budget such that the marginal utility per dollar spent is equal for both goods. Given the budget constraint of $7, purchasing 3 toffee bars and 4 bags of cashews will likely provide the highest total utility based on typical utility maximization principles.

The Table Below Shows the Quantities of Toffee Bars and Bags