For lunch, Wendy eats only salads or fruit & yogurt smoothies. Her weekly food budget is $48. Each salad costs $6 and each smoothie costs $3. When deciding how much of each good to buy, Wendy knows that 2 salads and 4 smoothies will give her a utility of 8. What is Wendy's utility-maximizing point?

Question

Quizplus · Accepted Answer

Given Wendy's budget of $48, the cost of salads ($6 each), and smoothies ($3 each), the utility-maximizing point must be one that she can afford. Option D, 4 salads and 8 smoothies, costs exactly $48 ($24 on salads + $24 on smoothies) and is a feasible choice within her budget constraints, assuming it maximizes her utility based on the given and implied preferences.

For Lunch, Wendy Eats Only Salads or Fruit & Yogurt