-Refer to the above table. Assume the consumer spends his entire income. The price of a hamburger is $1, the price of a movie is $6, and the consumer has $15. What is the consumer's optimum?
A) 2 hamburgers and 2 movies
B) 3 hamburgers and 2 movies
C) 4 hamburgers and 4 movies
D) 0 hamburgers and 2.5 movies

Question

-Refer to the above table. Assume the consumer spends his entire income. The price of a hamburger is $1, the price of a movie is $6, and the consumer has $15. What is the consumer's optimum?
A) 2 hamburgers and 2 movies 
B) 3 hamburgers and 2 movies 
C) 4 hamburgers and 4 movies 
D) 0 hamburgers and 2.5 movies

Quizplus · Accepted Answer

The consumer's optimum is where they maximize their utility given their budget constraint. With $15, buying 3 hamburgers ($3) and 2 movies ($12) uses the entire budget and provides a balanced consumption of goods.

-Refer to the Above Table