Jennifer gets 5 utils from consuming her first slice of pizza, 4 utils from the second slice, 3 utils from the third, etc. Each slice of pizza costs $1. She also gets 4 utils from her first soda, 2 utils from the second, and 1 util from the third. Each soda costs $1. If Jennifer only has $4 to spend and spends it all on pizza and sodas, what is her total utility from the purchase if she wants to maximize her total utility?

Question

Business

Yaretzi Compton

10 June, 13:10

Jennifer gets 5 utils from consuming her first slice of pizza, 4 utils from the second slice, 3 utils from the third, etc. Each slice of pizza costs $1. She also gets 4 utils from her first soda, 2 utils from the second, and 1 util from the third. Each soda costs $1. If Jennifer only has $4 to spend and spends it all on pizza and sodas, what is her total utility from the purchase if she wants to maximize her total utility?

+3

Answers (1)

Know the Answer?

Nayeli Owens · Answer 1

The maximum utility is 16 utils

Explanation:

To maximize the utility we must choose the items that gave most utils.

Each item cost $1 and we have $4 to spend.

1 slice of pizza: 5 utils

2 slice of pizza: 4 utils

3 slice of pizza: 3 utils

1 soda: 4 utils

2 soda: 3 utils

3 soda: 2 utils

If we display them in a decrease order and we choose the first four rows.

1 slice of pizza: 5 utils (1 dollar)

2 slice of pizza: 4 utils (1 dollar)

1 soda: 4 utils (1 dollar)

3 slice of pizza: 3 utils (1 dollar)

2 soda: 3 utils

3 soda: 2 utils

Highlighted are the ones we must get to get the maximum utility.

The maximum utility is 5 utils + 4 utils+4 utils+3 utils = 16 utils