-Suppose that you consume only pizza, which costs $4 per slice, and Diet Pepsi, which costs $2 per can. The table above gives your utility from consuming these two goods. If your income is $20, which of the following consumption combinations will you choose?
A) 3 slices of pizza and 4 Diet Pepsis.
B) 2 slice of pizza and 6 Diet Pepsis.
C) 5 slices of pizza and no Diet Pepsi.
D) 4 slices of pizza and 2 Diet Pepsis.
E) None of the above answers is correct.

Question

-Suppose that you consume only pizza, which costs $4 per slice, and Diet Pepsi, which costs $2 per can. The table above gives your utility from consuming these two goods. If your income is $20, which of the following consumption combinations will you choose?
A) 3 slices of pizza and 4 Diet Pepsis. 
B) 2 slice of pizza and 6 Diet Pepsis. 
C) 5 slices of pizza and no Diet Pepsi. 
D) 4 slices of pizza and 2 Diet Pepsis. 
E) None of the above answers is correct.

Quizplus · Accepted Answer

The combination of 3 slices of pizza ($12) and 4 Diet Pepsis ($8) exactly uses the $20 budget and provides the highest utility based on the given table.

-Suppose That You Consume Only Pizza, Which Costs $4 Per