If this consumer has $13.00 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 $0.50Cans per WeekPrice of Slice of Pizza = $1.00Slices per WeekTotal UtilityTotal Utility1151322292633423914544115.75565513675.758615417118766778968910592011011310213

Answer: A consumer maximizes his/her utility where the following conditions are satisfied:…

Answered: If this consumer has $13.00 to spend on…

If this consumer has $13.00 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?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics

Section7.1: Utility Theory

Problem 3ST

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Question

If this consumer has $13.00 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
Total Utility
Total Utility
1
15
1
32
2
29
2
63
3
42
3
91
4
54
4
115.75
5
65
5
136
75.75
86
154
171
187
6
6
7
7
8
96
8
9
105
9
201
10
113
10
213

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