-Refer to Table 5.17 to answer this question.Assume that the price of a latté is $5 and pastries are priced at $4 each.If Kyle has $36 to spend how many units of each will he buy in order to maximize his TU?
A)2 lattés and 6 pastries.
B)3 lattés and 5 pastries.
C)4 lattés and 4 pastries.
D)5 lattés and 3 pastries.

Question

-Refer to Table 5.17 to answer this question.Assume that the price of a latté is $5 and pastries are priced at $4 each.If Kyle has $36 to spend how many units of each will he buy in order to maximize his TU?
A)2 lattés and 6 pastries. 
B)3 lattés and 5 pastries. 
C)4 lattés and 4 pastries. 
D)5 lattés and 3 pastries.

Quizplus · Accepted Answer

To maximize total utility (TU) with a budget of $36, Kyle would buy items that give the highest utility per dollar spent. Without the specific utility values from Table 5.17, the correct answer can't be determined based on the information provided. However, assuming each option was calculated based on maximizing TU from given utility values, option C would be correct as it suggests a balanced purchase that might maximize TU within the budget constraint.