-Suppose that you consume only pizza, which costs $4 per slice, and Diet Pepsi, which costs $2 each. The table above gives your utility from consuming these two goods. If your income is $20, which of the following consumption combinations will you choose?
A) 5 slices of pizza and no Diet Pepsi
B) 4 slices of pizza and 2 Diet Pepsis
C) 3 slices of pizza and 4 Diet Pepsis
D) 2 slice of pizza and 6 Diet Pepsis

Question

-Suppose that you consume only pizza, which costs $4 per slice, and Diet Pepsi, which costs $2 each. The table above gives your utility from consuming these two goods. If your income is $20, which of the following consumption combinations will you choose?
A) 5 slices of pizza and no Diet Pepsi 
B) 4 slices of pizza and 2 Diet Pepsis 
C) 3 slices of pizza and 4 Diet Pepsis 
D) 2 slice of pizza and 6 Diet Pepsis

Quizplus · Accepted Answer

The combination of 3 slices of pizza ($12) and 4 Diet Pepsis ($8) exactly matches the $20 budget and maximizes utility based on the given table.

-Suppose That You Consume Only Pizza, Which Costs $4 Per