Refer to the following table to answer the following questions:

-Assume that chips cost $1 and soda costs $2.If the consumer has $7,the combination of goods that would maximize her utility per dollar leads to a utility equal to ________ utils.
A) 72
B) 90
C) 54
D) 66
E) 46

Question

Refer to the following table to answer the following questions:
 
-Assume that chips cost $1 and soda costs $2.If the consumer has $7,the combination of goods that would maximize her utility per dollar leads to a utility equal to ________ utils.
A) 72 
B) 90 
C) 54 
D) 66 
E) 46

Quizplus · Accepted Answer

The consumer has $7 to spend on chips and soda. The utility per dollar for chips is 1 util per dollar, and the utility per dollar for soda is 2 utils per dollar. Therefore, the consumer should spend all of her money on soda to maximize her utility per dollar. This would give her a total utility of 7 * 2 = 14 utils.

Refer to the Following Table to Answer the Following Questions