Exhibit 6-2 Total utility for hamburgers, fries, and Cokes

In Exhibit 6-2, assume that the price of hamburgers is $2 each, fries cost 50 cents each, and Cokes cost $1 each. Suppose the consumer has $6 to spend on hamburgers, fries, and Cokes. Which of the following meals gives the consumer the most utility?
A) 3 hamburgers, no fries, and no Cokes.
B) 2 hamburgers, no fries, and 2 Cokes.
C) 2 hamburgers, 2 orders of fries and 1 Coke.
D) 1 hamburger, 2 orders of fries, and 3 Cokes.

Question

Exhibit 6-2 Total utility for hamburgers, fries, and Cokes

In Exhibit 6-2, assume that the price of hamburgers is $2 each, fries cost 50 cents each, and Cokes cost $1 each. Suppose the consumer has $6 to spend on hamburgers, fries, and Cokes. Which of the following meals gives the consumer the most utility?
A) 3 hamburgers, no fries, and no Cokes. 
B) 2 hamburgers, no fries, and 2 Cokes. 
C) 2 hamburgers, 2 orders of fries and 1 Coke. 
D) 1 hamburger, 2 orders of fries, and 3 Cokes.

Quizplus · Accepted Answer

The total utility for each option is:
A) 28 utils (3 hamburgers x 9 utils)
B) 32 utils (2 hamburgers x 9 utils + 2 Cokes x 6 utils)
C) 36.5 utils (2 hamburgers x 9 utils + 2 orders of fries x 4 utils + 1 Coke x 5.5 utils)
D) 16.5 utils (1 hamburger x 9 utils + 2 orders of fries x 4 utils + 3 Cokes x 1.5 utils)
Therefore, option C gives the consumer the most utility.

Exhibit 6-2 Total Utility for Hamburgers, Fries, and Cokes