Exhibit 6-7 Marginal utility for sandwiches and sodas $$\begin{array} { | c | c | c | }
\hline \text { Quantity } & \text { Sandwiches } & \text { Sodas } \
\hline 1 & 10 & 5 \
2 & 8 & 4 \
3 & 6 & 3 \
4 & 3 & 1 \
5 & - 1 & 0 \
\hline
\end{array}$$
-Refer to Exhibit 6-7. If price of a sandwich is $1, the price of a soda is $1, and income is $5, Marian should buy ____ sandwiches and ____ sodas.

Question

Exhibit 6-7 Marginal utility for sandwiches and sodas $$\begin{array} { | c | c | c | } 
\hline \text { Quantity } & \text { Sandwiches } & \text { Sodas } \
\hline 1 & 10 & 5 \
2 & 8 & 4 \
3 & 6 & 3 \
4 & 3 & 1 \
5 & - 1 & 0 \
\hline
\end{array}$$
-Refer to Exhibit 6-7. If price of a sandwich is $1, the price of a soda is $1, and income is $5, Marian should buy ____ sandwiches and ____ sodas.

Quizplus · Accepted Answer

Marian should allocate her budget to equalize the marginal utility per dollar spent on each good. The marginal utility per dollar for sandwiches and sodas is highest when buying three sandwiches and two sodas, maximizing her total utility within her $5 budget.

Exhibit 6-7 Marginal Utility for Sandwiches and Sodas -Refer to Exhibit 6-7