Jed's weekly budget for lunch is $24. He eats only pizza and burgers. Each pizza costs $6 and each burger costs $3. Jed knows that 2 pizzas and 4 burgers will give him a utility of 8. At his utility-maximizing point, Jed's utility is:
A) 4
B) 8
C) 6
D) 10

Question

Quizplus · Accepted Answer

Jed's utility-maximizing point would involve a combination of pizzas and burgers that maximizes his utility given his budget constraint. Since it's stated that 2 pizzas and 4 burgers give him a utility of 8 and this combination exactly fits his weekly budget ($12 for pizzas + $12 for burgers = $24), this is likely his utility-maximizing combination. Therefore, his utility at this point is 8.

Jed's Weekly Budget for Lunch Is $24