-The above table shows Tammy's total utility from streaming videos and CDs. If Tammy has $110 to spend on videos and CDs and if the price of a streamed video is $10 and the price of a CD is $20, then Tammy maximizes her utility by purchasing
A) 3 CDs and 5 videos.
B) 5 CDs and 1 video.
C) 4 CDs and 3 videos.
D) none of the above.

Question

-The above table shows Tammy's total utility from streaming videos and CDs. If Tammy has $110 to spend on videos and CDs and if the price of a streamed video is $10 and the price of a CD is $20, then Tammy maximizes her utility by purchasing
A) 3 CDs and 5 videos. 
B) 5 CDs and 1 video. 
C) 4 CDs and 3 videos. 
D) none of the above.

Quizplus · Accepted Answer

Tammy's total utility from 3 CDs and 5 videos is 120, which is the highest possible utility she can achieve with her budget of $110.

-The Above Table Shows Tammy's Total Utility from Streaming Videos