Question

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?

Answer 1

The maximum utility is 16 utils

Step-by-step 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