The accompanying table describes Ben's preferences over cake and ice cream.The utility from consumption of one good is independent of the consumption of the other.The price of cake is $10 per unit,and the price of ice cream is $4 per unit.
If Ben has $50 to spend,the optimal combination of these goods is:
A) 4 units of cake and 1 unit of ice cream.
B) 3 units of cake and 5 units of ice cream.
C) 3 units of cake and 1 unit of ice cream.
D) 5 units of cake.
E) none of the above.

Question

The accompanying table describes Ben's preferences over cake and ice cream.The utility from consumption of one good is independent of the consumption of the other.The price of cake is $10 per unit,and the price of ice cream is $4 per unit. 
If Ben has $50 to spend,the optimal combination of these goods is:
A) 4 units of cake and 1 unit of ice cream. 
B) 3 units of cake and 5 units of ice cream. 
C) 3 units of cake and 1 unit of ice cream. 
D) 5 units of cake. 
E) none of the above.

Quizplus · Accepted Answer

The Answer of The accompanying table describes Ben's preferences over cake and ice cream.The utility from consumption of one good is independent of the consumption of the other.The price of cake is $10 per unit,and the price of ice cream is $4 per unit. 
If Ben has $50 to spend,the optimal combination of these goods is:
A) 4 units of cake and 1 unit of ice cream. 
B) 3 units of cake and 5 units of ice cream. 
C) 3 units of cake and 1 unit of ice cream. 
D) 5 units of cake. 
E) none of the above.

The Accompanying Table Describes Ben's Preferences Over Cake and Ice