Table 8.1

Keegan has $30 to spend on Pita Wraps and Bubble Tea. The price of a Pita Wrap is $6 and the price of a glass of Bubble Tea is $3. Table 8.1 shows his total utility from different quantities of the two items.
-Refer to Table 8.1.What is Keegan's optimal consumption bundle?

Question

Table 8.1
  
Keegan has $30 to spend on Pita Wraps and Bubble Tea. The price of a Pita Wrap is $6 and the price of a glass of Bubble Tea is $3. Table 8.1 shows his total utility from different quantities of the two items.
-Refer to Table 8.1.What is Keegan's optimal consumption bundle?

Quizplus · Accepted Answer

Keegan's optimal consumption bundle is 3 pita wraps and 4 bubble teas because this combination gives him the highest level of utility, as indicated by the highest indifference curve (U3) that he can reach with his budget constraint.

Table 8.1 Keegan Has $30 to Spend on Pita Wraps and Bubble