Becky needs to decide how many cups of coffee and pieces of cake she will buy for a meeting with an office mate. She estimates her total utility for different quantities of coffee and cakes below. A cup of coffee is $1.00, and each piece of cake s $0.50. Becky has a total of $3 to spend. What is Becky's total utility if she buys 1 cup of coffee and 4 pieces of cake?
Becky needs to decide how many cups of coffee and pieces of cake she will buy for a meeting with an office mate. She estimates her total utility for different quantities of coffee and cakes below. A cup of coffee is $1.00, and each piece of cake s $0.50. Becky has a total of $3 to spend. What is Becky's total utility if she buys 1 cup of coffee and 4 pieces of cake?
Chapter21: Demand: Consumer Choic
Section: Chapter Questions
Problem 16E
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Transcribed Image Text:Becky needs to decide how many cups of coffee and pieces of cake she will buy for a meeting with an office mate. She
estimates her total utility for different quantities of coffee and cakes below. A cup of coffee is $1.00, and each piece of cake
is $0.50. Becky has a total of $3 to spend. What is Becky's total utility if she buys 1 cup of coffee and 4 pieces of cake?
Cups of
Coffee
1
2
3
4
5
6
Utility from Consumption
Pieces of
Cake
1
2
3
4
5
6
A
B
C
D
Total Utility from
Cups of Coffee
33
56
79
Total Utility from
Pieces of Cake
15
32
48
63
77
90
Total Utility of Different Consumption Bundles
Consumption Bundle Cups of Coffee Pieces of Cake Total Utility
3
0
2
2
1
4
0
6
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