Refer to the following table to answer the following questions:

-Assume that chips cost $1 and soda costs $2.If the consumer has $14,the combination of goods that would maximize his utility per dollar and remain within his budget would be
A) 2 chips and 7 sodas.
B) 6 chips and 4 sodas.
C) 4 chips and 6 sodas.
D) 4 chips and 2 sodas.
E) 7 chips and 7 sodas.

Question

Refer to the following table to answer the following questions:
 
-Assume that chips cost $1 and soda costs $2.If the consumer has $14,the combination of goods that would maximize his utility per dollar and remain within his budget would be
A) 2 chips and 7 sodas. 
B) 6 chips and 4 sodas. 
C) 4 chips and 6 sodas. 
D) 4 chips and 2 sodas. 
E) 7 chips and 7 sodas.

Quizplus · Accepted Answer

To maximize utility per dollar while staying within a $14 budget, we need to find the combination of chips and soda that uses the entire budget. Option B, 6 chips and 4 sodas, costs exactly $14 (6 chips * $1 + 4 sodas * $2 = $6 + $8 = $14) and uses the entire budget, unlike the other options which either exceed the budget or don't use it fully.

Refer to the Following Table to Answer the Following Questions