Refer to the following table to answer the following questions:

-Assume that strawberries cost $1 and apples cost $2.If a consumer has $16,the bundle of goods that would maximize his utility per dollar and remain within his budget would be
A) 2 strawberries and 7 apples.
B) 6 strawberries and 5 apples.
C) 4 strawberries and 6 apples.
D) 4 strawberries and 2 apples.
E) 7 strawberries and 7 apples.

Question

Refer to the following table to answer the following questions:
 
-Assume that strawberries cost $1 and apples cost $2.If a consumer has $16,the bundle of goods that would maximize his utility per dollar and remain within his budget would be
A) 2 strawberries and 7 apples. 
B) 6 strawberries and 5 apples. 
C) 4 strawberries and 6 apples. 
D) 4 strawberries and 2 apples. 
E) 7 strawberries and 7 apples.

Quizplus · Accepted Answer

To maximize utility per dollar while staying within a $16 budget, the consumer should aim to get as many of the cheaper item (strawberries) as possible, without sacrificing too many of the more expensive item (apples) to stay within budget. Option B, 6 strawberries ($6) and 5 apples ($10), totals exactly $16 and offers a balanced quantity of both goods.

Refer to the Following Table to Answer the Following Questions