-Refer to the above table. Suppose the price of a hamburger is $2, the price of a movie is $5, and the income of the consumer is $29. What will the consumer's total utility equal at an optimum?
A) 70
B) 1025
C) 1060
D) 1118

Question

-Refer to the above table. Suppose the price of a hamburger is $2, the price of a movie is $5, and the income of the consumer is $29. What will the consumer's total utility equal at an optimum?
A) 70 
B) 1025 
C) 1060 
D) 1118

Quizplus · Accepted Answer

At the optimum, the consumer will allocate their income to maximize total utility. By purchasing 4 hamburgers ($8) and 4 movies ($20), the consumer spends $28 and achieves a total utility of 1060.

-Refer to the Above Table