This table shows the different combinations of goods that Jack can consume,given that his income to spend on these two items is $10.
Considering the information in the table shown,Jack's total utility from consuming bundle D would be:
A)1,160.
B)1,300.
C)950.
D)2,220.

Question

This table shows the different combinations of goods that Jack can consume,given that his income to spend on these two items is $10. 
Considering the information in the table shown,Jack's total utility from consuming bundle D would be:
A)1,160. 
B)1,300. 
C)950. 
D)2,220.

Quizplus · Accepted Answer

Bundle D has a combination of 8 units of product X and 6 units of product Y, which gives a total utility of (8^0.5)(6^0.5) = 20. However, the price of this bundle is $10, which means that all other bundles are either more expensive or have a lower total utility. Therefore, Bundle D is the best choice for Jack.

This Table Shows the Different Combinations of Goods That Jack