Table 10-6
Table 10-6 lists Jay's marginal utilities for burgers and Pepsi. Jay has $7 to spend on these two goods. The price of a burger is $2 and the price of a can of Pepsi is $1.
-Refer to Table 10-6. What is Jay's optimal consumption bundle?
A) 1 burger and 2 Pepsis
B) 2 burgers and 3 Pepsis
C) 3 burgers and 1 Pepsi
D) 3 burgers and 2 Pepsis

Question

Table 10-6
  Table 10-6 lists Jay's marginal utilities for burgers and Pepsi. Jay has $7 to spend on these two goods. The price of a burger is $2 and the price of a can of Pepsi is $1.
-Refer to Table 10-6. What is Jay's optimal consumption bundle?
A) 1 burger and 2 Pepsis 
B) 2 burgers and 3 Pepsis 
C) 3 burgers and 1 Pepsi 
D) 3 burgers and 2 Pepsis

Quizplus · Accepted Answer

The optimal consumption bundle is the one that maximizes Jay's utility given his budget constraint. Without the specific details of Table 10-6, we assume that option B provides the highest utility within Jay's budget.

Table 10-6 Table 10-6 Lists Jay's Marginal Utilities for Burgers