Maria is considering her lunch purchase.Unfortunately,the deli doesn't have a very extensive menu: apples at $0.50 each,bagels at $1 each,and cappuccino at $2 each.Her utility from each is shown in the table below.

-Refer to the above information to answer this question.Suppose that Maria only has $5 to spend on lunch.How should she allocate her spending so as to maximize her total utility?
A)2 apples and 4 bagels.
B)2 apples,2 bagels and 1 cappuccino.
C)2 apples and 2 cappuccinos.
D)1 bagel and 2 cappuccinos.
E)3 bagels and 1 cappuccino.

Question

Maria is considering her lunch purchase.Unfortunately,the deli doesn't have a very extensive menu: apples at $0.50 each,bagels at $1 each,and cappuccino at $2 each.Her utility from each is shown in the table below.
 
-Refer to the above information to answer this question.Suppose that Maria only has $5 to spend on lunch.How should she allocate her spending so as to maximize her total utility?
A)2 apples and 4 bagels. 
B)2 apples,2 bagels and 1 cappuccino. 
C)2 apples and 2 cappuccinos. 
D)1 bagel and 2 cappuccinos. 
E)3 bagels and 1 cappuccino.

Quizplus · Accepted Answer

Maria has $5 to spend, so she can buy 2 apples ($1), 2 bagels ($2), and 1 cappuccino ($2) for a total of $5. The total utility in this case would be:
2 apples = 20
2 bagels = 24
1 cappuccino = 8
Total = 52
This is the highest total utility she can achieve with her budget.

Maria Is Considering Her Lunch Purchase