Exhibit 20-3

-Refer to Exhibit 20-3. Linda spends $5 a week on apples and oranges. If the price of both goods is $1 per unit, what is Linda's total utility from consuming the optimal bundle of goods?

Question

Exhibit 20-3
​
 
-Refer to Exhibit 20-3. Linda spends $5 a week on apples and oranges. If the price of both goods is $1 per unit, what is Linda's total utility from consuming the optimal bundle of goods?

Quizplus · Accepted Answer

Linda spends $5 on apples and oranges, with each costing $1 per unit, so she can buy 5 units in total. The optimal bundle maximizes her utility, which is given as 88 in the choices.

Exhibit 20-3 ​

Exhibit 20-3