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,if we assume Jack is a rational utility maximizer,then we can predict he will buy which bundle with his $10?
A) A
B) B
C) C
D) D

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,if we assume Jack is a rational utility maximizer,then we can predict he will buy which bundle with his $10?
A) A 
B) B 
C) C 
D) D

Quizplus · Accepted Answer

To maximize utility, Jack needs to choose the bundle that provides him with the highest level of satisfaction. In this case, bundle C is the best choice as it gives him 8 units of pizza and 2 units of soda. This combination provides the highest level of satisfaction for Jack as it gives him the highest total utility of 36 (24 for pizza and 12 for soda) out of all the available choices. Therefore, Jack will choose bundle C with his $10 to maximize his utility.

This Table Shows the Different Combinations of Goods That Jack