Table 6.2 Table 6.2 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 6.2.If Keira maximises her utility, she should buy

Question

Table 6.2  Table 6.2 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 6.2.If Keira maximises her utility, she should buy

Quizplus · Accepted Answer

To maximize Keira's utility, we need to find the combination of soup and sandwiches that gives her the most satisfaction for her $18 budget. 
Looking at the table, we can see that the marginal utility per dollar spent is highest for Keira with three cups of soup and four sandwiches. This also fits into her budget as it would cost her $14 (3 x $2 for soup and 4 x $3 for sandwiches), leaving her with $4 to spend on other items or to save. Therefore, option B (3 cups of soup and 4 sandwiches) is the best choice for Keira to maximize her utility given her budget.

Table 62 Table 6