Assume the price of a cup of coffee is $0.50, the price of a cupcake is $0.50
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Question:
Assume the price of a cup of coffee is $0.50, the price of a cupcake is $0.50 and the individual has a budget of $1.50. Assuming they maximize their utility, how many of each good will they purchase?
Number of coffee cups | Total utility | Number of cupcakes | Total Utility | |
1 | 20 | 1 | 25 | |
2 | 35 | 2 | 45 | |
3 | 47 | 3 | 59 | |
4 | 57 | 4 | 65 | |
5 | 63 | 5 | 67 |
Question 15 options:
4 cups of coffee and 2 cupcakes | |
1 cup of coffee and 2 cupcakes | |
2 cups of coffee and 4 cupcakes | |
answer not given | |
5 cups of coffee and 4 cupcakes |
Related Book For
Macroeconomics Principles Applications And Tools
ISBN: 9780134089034
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
Posted Date: