Jacob has a budget of $ 18 to spend on either soda or popcorn at the movie theater. A bag of popcorn costs $3 while a can of soda costs $2. Use the table below to identify the consumer equilibrum, or the utility maximizing quantity of soda and popcorn. given Jacob's budget constraint.
Jacob has a budget of $ 18 to spend on either soda or popcorn at the movie theater. A bag of popcorn costs $3 while a can of soda costs $2. Use the table below to identify the consumer equilibrum, or the utility maximizing quantity of soda and popcorn. given Jacob's budget constraint.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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STUDY PROBLEM: Jacob has a budget of $ 18 to spend on either soda or popcorn at the movie theater. A bag of popcorn costs $3 while a can of soda costs $2. Use the table below to identify the consumer equilibrum, or the utility maximizing quantity of soda and popcorn. given Jacob's budget constraint.
Soda (Quantity) |
Total Utility | Popcorn (Quantity) | Total Utility |
1 | 10 | 1 | 21 |
2 | 18 | 2 | 36 |
3 | 24 | 3 | 48 |
4 | 28 | 4 | 57 |
5 | 30 | 5 | 60 |
6 | 31 | 6 | 62 |
a.) 6 sodas & 2 bags of popcorn
b.) 2 sodas & 3 popcorns
c.) 3 sodas & 4 bags of popcorn
d.) 4 sodas & 3 bags of popcorn
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