Price of Can of Beer = $0.50 Cans per Week Price of Slice of Pizza = $1.00 Slices per Week %3D Total Utility Total Utility 15 1 32 2 29 63 3 42 3 91 4 54 4 115.75 5 65 5 136 75.75 6. 154 7 86 7 171 96 8 187 105 113 9. 201 10 10 213 If this consumer has $10.50 to spend on cans of beer and slices of pizza in any given week, then what is the optimal combination of beer and pizza for the consumer to buy to maximize utility?
Price of Can of Beer = $0.50 Cans per Week Price of Slice of Pizza = $1.00 Slices per Week %3D Total Utility Total Utility 15 1 32 2 29 63 3 42 3 91 4 54 4 115.75 5 65 5 136 75.75 6. 154 7 86 7 171 96 8 187 105 113 9. 201 10 10 213 If this consumer has $10.50 to spend on cans of beer and slices of pizza in any given week, then what is the optimal combination of beer and pizza for the consumer to buy to maximize utility?
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.1P
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Question
Transcribed Image Text:Price of Can ofBeer $0.50
Cans per Week
Price of Slice of Pizza = $1.00
Slices per Week
%3D
Total Utility
Total Utility
1
15
1
32
2
29
2
63
42
3
91
4
54
4
115.75
5
65
136
75.75
6.
154
7
86
7
171
96
187
105
113
9
201
10
10
213
If this consumer has $10.50 to spend on cans of
beer and slices of pizza in any given week, then what
is the optimal combination of beer and pizza for the
consumer to buy to maximize utility?
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