Apples Tacos

-Sally derives utility from consuming apples and tacos as shown in the table above. Apples cost $1 each and tacos cost $2 each. If Sally's income is $9, she will consume
A) 5 apples and 2 tacos.
B) 3 apples and 3 tacos.
C) 1 apple and 4 tacos.
D) no apples and 4 1/2 tacos.

Question

Apples Tacos
 
-Sally derives utility from consuming apples and tacos as shown in the table above. Apples cost $1 each and tacos cost $2 each. If Sally's income is $9, she will consume
A) 5 apples and 2 tacos. 
B) 3 apples and 3 tacos. 
C) 1 apple and 4 tacos. 
D) no apples and 4 1/2 tacos.

Quizplus · Accepted Answer

Sally's budget constraint is $9. The combination of 3 apples ($3) and 3 tacos ($6) uses her entire budget and maximizes her utility given the prices.

Apples Tacos -Sally Derives Utility from Consuming Apples and Tacos as Shown