-Complete Table 19.3.Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit. Refer to Table 19.3.If Michael has $48 to spend on cola and pretzels,what combination should he purchase in order to maximize his utility?
A)Four colas and four pretzels.
B)Five colas and two pretzels.
C)Three colas and five pretzels.

Question

-Complete Table 19.3.Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit.  Refer to Table 19.3.If Michael has $48 to spend on cola and pretzels,what combination should he purchase in order to maximize his utility?
A)Four colas and four pretzels. 
B)Five colas and two pretzels. 
C)Three colas and five pretzels.

Quizplus · Accepted Answer

Michael should purchase four colas and four pretzels to maximize his utility. This combination gives him the highest total utility of 20 utils.