Figure 21-5
-Refer to Figure 21-5.Suppose the price of popcorn is $2,the price of Mt.Dew is $4,the value of A is 30,and the value of B is 15.How much income does the consumer have?
A) $120
B) $80
C) $60
D) $30

Question

Figure 21-5 
-Refer to Figure 21-5.Suppose the price of popcorn is $2,the price of Mt.Dew is $4,the value of A is 30,and the value of B is 15.How much income does the consumer have?
A) $120 
B) $80 
C) $60 
D) $30

Quizplus · Accepted Answer

The consumer has $60 of income ($2 for popcorn x 30 units + $4 for Mt. Dew x 15 units = $60). 
In order to maximize his utility, the consumer should purchase 20 units of popcorn and 5 units of Mt. Dew. This combination gives him the highest total utility of 120 (20 x 6 + 5 x 18 = 120).

Figure 21-5 -Refer to Figure 21-5.Suppose the Price of Popcorn Is $2,the