Exhibit
A consumer is faced with choosing between hamburgers and milkshakes that are priced at $2 and $1, respectively. The marginal utility derived from each of the two goods is as follows:

-Refer to Exhibit. How many hamburgers and milkshakes will be consumed each if the consumer maximizes his utility subject to $11 of income each week?
A)5 hamburgers and 1 milkshake
B)1 hamburger and 5 milkshakes
C)4 hamburgers and 3 milkshakes
D)3 hamburgers and 4 milkshakes

Question

Exhibit
A consumer is faced with choosing between hamburgers and milkshakes that are priced at $2 and $1, respectively. The marginal utility derived from each of the two goods is as follows:
 
-Refer to Exhibit. How many hamburgers and milkshakes will be consumed each if the consumer maximizes his utility subject to $11 of income each week?
A)5 hamburgers and 1 milkshake 
B)1 hamburger and 5 milkshakes 
C)4 hamburgers and 3 milkshakes 
D)3 hamburgers and 4 milkshakes

Quizplus · Accepted Answer

The consumer will maximize utility by choosing the combination of hamburgers and milkshakes that exhausts the $11 budget while providing the highest utility. Assuming the prices allow for this combination, 4 hamburgers and 3 milkshakes likely fit the budget constraint and maximize utility.

Exhibit A Consumer Is Faced with Choosing Between Hamburgers and Milkshakes