Pizza Pepsi

-The above table shows Priscilla's marginal utility from the two goods she consumes, pizza and Pepsi. The price of a slice of pizza is $2 and of a can of Pepsi is $1. Suppose Priscilla has $6 to spend. Which combination of pizza and Pepsi will maximize Priscilla's utility?
A) 3 slices of pizza
B) 2 slices of pizza and 2 cans of Pepsi
C) 3 cans of Pepsi and 1 slice of pizza
D) 1 slice of pizza and 3 cans of Pepsi

Question

Pizza Pepsi
 
-The above table shows Priscilla's marginal utility from the two goods she consumes, pizza and Pepsi. The price of a slice of pizza is $2 and of a can of Pepsi is $1. Suppose Priscilla has $6 to spend. Which combination of pizza and Pepsi will maximize Priscilla's utility?
A) 3 slices of pizza 
B) 2 slices of pizza and 2 cans of Pepsi 
C) 3 cans of Pepsi and 1 slice of pizza 
D) 1 slice of pizza and 3 cans of Pepsi

Quizplus · Accepted Answer

To maximize utility, Priscilla should allocate her budget such that the marginal utility per dollar spent on each good is equal. With $6, buying 2 slices of pizza ($4) and 2 cans of Pepsi ($2) balances her budget and maximizes her utility.

Pizza Pepsi -The Above Table Shows Priscilla's Marginal Utility from the Two