The table below shows the total utility associated with various units of goods X and Y. Table 6.5
Refer to Table 6.5.Given that the price of good X is $2 per unit, the price of good Y is $5 per unit, and that the consumer spends a total of $14 on both goods, what is the total utility associated with the utility-maximizing combination?

Question

The table below shows the total utility associated with various units of goods X and Y. Table 6.5
 Refer to Table 6.5.Given that the price of good X is $2 per unit, the price of good Y is $5 per unit, and that the consumer spends a total of $14 on both goods, what is the total utility associated with the utility-maximizing combination?

Quizplus · Accepted Answer

To determine the utility-maximizing combination, we need to find the combination of X and Y that the consumer can purchase with a total expenditure of $14 that maximizes total utility. 
Since the price of X is $2 and the price of Y is $5, we can set up the following equation: 
2X + 5Y = 14 
Rearranging this equation, we get: 
Y = (14 - 2X)/5

To maximize total utility, we need to find the combination of X and Y that gives us the highest total utility. From the table, we can see that the highest total utility is associated with 3 units of X and 17 units of Y, which gives us a total utility of 172. 
Therefore, the total utility associated with the utility-maximizing combination is 172.

The Table Below Shows the Total Utility Associated with Various