Stewie enjoys watching DVDs and listening to his iPod.Suppose his utility function is given by U(D,I)= 3D + 4(D x I),where D is the number of hours he spends watching DVDs and I is the number of hours he spends listening to his iPod.Which of the following combination will provide Stewie with the greatest amount of satisfaction?
A) 4 hours of watching DVDs and 8 hours of listening to his iPod
B) 6 hours of watching DVDs and 6 hours of listening to his iPod
C) 2 hours of watching DVDs and 10 hours of listening to his iPod
D) 8 hours of watching DVDs and 6 hours of listening to his iPod

Question

Quizplus · Accepted Answer

To maximize Stewie's satisfaction, we need to find the combination of hours that maximize his utility function, U(D,I) = 3D + 4(D x I).

Option A: U(4,8) = 3(4) + 4(4x8) = 131
Option B: U(6,6) = 3(6) + 4(6x6) = 99
Option C: U(2,10) = 3(2) + 4(2x10) = 83
Option D: U(8,6) = 3(8) + 4(8x6) = 147

Therefore, Stewie will have the greatest amount of satisfaction if he spends 8 hours watching DVDs and 6 hours listening to his iPod (Option D).

Stewie Enjoys Watching DVDs and Listening to His IPod