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Question
Table 10-6| Quantity of Burgers | Marginal Utility | Quantity of Pepsi | Marginal Utility |
| 1 | 20 | 1 | 30 |
| 2 | 14 | 2 | 10 |
| 3 | 10 | 3 | 7 |
| 4 | 3 | 4 | 5 |
| 5 | 1 | 5 | 1 |
| 6 | -5 | 6 | 0 |
| 7 | -10 | 7 | -4 |
Table 10-6 lists Jay's marginal utilities for burgers and Pepsi. Jay has $7 to spend on these two goods. The price of a burger is $2 and the price of a can of Pepsi is $1.
Refer to Table 10-6. What is Jay's optimal consumption bundle?
A) 1 burger and 2 Pepsis
B) 2 burgers and 3 Pepsis
C) 3 burgers and 1 Pepsi
D) 3 burgers and 2 Pepsis
Answer
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