Table 6.1 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 6-1 shows his total utility from different quantities of the two items.
-Refer to Table 6.1.If Keegan can drink all the bubble tea he wants for free, he will consume
A)4 glasses
B)5 glasses
C)6 glasses
D)7 glasses

Question

Table 6.1  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 6-1 shows his total utility from different quantities of the two items.
-Refer to Table 6.1.If Keegan can drink all the bubble tea he wants for free, he will consume
A)4 glasses 
B)5 glasses 
C)6 glasses 
D)7 glasses

Quizplus · Accepted Answer

Using the budget constraint, we can see that Keegan can buy a maximum of 5 Pita Wraps ($30 / $6 per wrap = 5 wraps) or 10 glasses of Bubble Tea ($30 / $3 per glass = 10 glasses). 
Therefore, the maximum quantity of Bubble Tea that Keegan can consume is 6 glasses (since any more would exceed his budget). 
Looking at the table, the total utility from consuming 6 glasses of Bubble Tea and 2 Pita Wraps is 37, which is the highest total utility combination. Therefore, the best choice for Keegan is to consume 6 glasses of Bubble Tea and 2 Pita Wraps.

Table 61 Keegan Has $30 to Spend on Pita Wraps