Elvis values the first gravy sandwich at $5,the second at $4.50,and the third at $4.If he buys three sandwiches for $3 each,his total utility has a value of _____
A)$4.50.
B)$1.50.
C)$13.50.
D)$9.50.
E)$12.00.

Question

Quizplus · Accepted Answer

The total utility value is the sum of the values Elvis assigns to each sandwich minus the total cost. For the first sandwich, he values it at $5, the second at $4.50, and the third at $4, totaling $13.50 in value. Since he buys three sandwiches for $3 each, the total cost is $9 ($3 x 3). However, the question asks for the total utility value, not the net gain, so the answer is simply the total value he assigns to the sandwiches, which is $13.50.

Elvis Values the First Gravy Sandwich at $5,the Second at $4.50,and