Table 10-2

Table 10-2 above shows Keira's utility from soup and sandwiches. The price of soup is $2 per cup and the price of a sandwich is $3. Keira has $18 to spend on these two goods.
-Refer to Table 10-2.If Keira maximizes her utility, how many units of each good should she buy?
A)1 cup of soup and 5 sandwiches
B)3 cups of soup and 4 sandwiches
C)6 cups of soup and 2 sandwiches
D)4 cups of soup and 3.5 sandwiches

Question

Table 10-2
  
Table 10-2 above shows Keira's utility from soup and sandwiches. The price of soup is $2 per cup and the price of a sandwich is $3. Keira has $18 to spend on these two goods.
-Refer to Table 10-2.If Keira maximizes her utility, how many units of each good should she buy?
A)1 cup of soup and 5 sandwiches 
B)3 cups of soup and 4 sandwiches 
C)6 cups of soup and 2 sandwiches 
D)4 cups of soup and 3.5 sandwiches

Quizplus · Accepted Answer

Keira should buy the combination of goods where the marginal utility per dollar spent on each good is equal, maximizing her total utility given her budget constraint.

Table 10-2 Table 10-2 Above Shows Keira's Utility from Soup and Sandwiches