Refer to the information provided in Table 6.1 below to answer the question(s) that follow.
Table 6.1
$$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Number of } \
\text { Hamburgers per } \
\text { Day }
\end{array} & \text { Total Utility } & \text { Marginal Utility } \
\hline 1 & 30 & \
\hline 2 & 52 & \
\hline 3 & 67 & \
\hline 4 & 76 & \
\hline 5 & & 4 \
\hline \begin{array} { c }
\text { Number of } \
\text { Sodas per Day }
\end{array} & \text { Total Utility } & \text { Marginal Utility } \
\hline 1 & 20 & \
\hline 2 & 35 & \
\hline 3 & 47 & \
\hline 4 & 57 & \
\hline 5 & & 7 \
\hline
\end{array}$$
-Refer to Table 6.1. If the price of a soda is $2, the price of a hamburger is $6, and George has $14 of income, George's utility-maximizing combination of sodas and hamburgers per day is
A) 1 soda and 2 hamburgers.
B) 4 sodas and 1 hamburger.
C) 3 sodas and 1.5 hamburgers.
D) indeterminate from this information.

Question

Refer to the information provided in Table 6.1 below to answer the question(s) that follow.
Table 6.1
 $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Number of } \
\text { Hamburgers per } \
\text { Day }
\end{array} & \text { Total Utility } & \text { Marginal Utility } \
\hline 1 & 30 & \
\hline 2 & 52 & \
\hline 3 & 67 & \
\hline 4 & 76 & \
\hline 5 & & 4 \
\hline \begin{array} { c } 
\text { Number of } \
\text { Sodas per Day }
\end{array} & \text { Total Utility } & \text { Marginal Utility } \
\hline 1 & 20 & \
\hline 2 & 35 & \
\hline 3 & 47 & \
\hline 4 & 57 & \
\hline 5 & & 7 \
\hline
\end{array}$$
-Refer to Table 6.1. If the price of a soda is $2, the price of a hamburger is $6, and George has $14 of income, George's utility-maximizing combination of sodas and hamburgers per day is
A) 1 soda and 2 hamburgers.
B) 4 sodas and 1 hamburger.
C) 3 sodas and 1.5 hamburgers.
D) indeterminate from this information.

Quizplus · Accepted Answer

To maximize utility, George should equalize the marginal utility per dollar spent on each good. The marginal utility per dollar for the 4th soda is 5 (MU of 10 divided by price of $2), and for the 1st hamburger is 5 (MU of 30 divided by price of $6). With $14, George can buy 4 sodas ($8) and 1 hamburger ($6).

Refer to the Information Provided in Table 6 -Refer to Table 6