Jane has a budget of $200 to spend at the mall. Her two favorite items are bags (Product X) which cost $35 and shoes (Product Y) which cost $40. In the schedule below you can see the marginal utility for each of her favorite items. Which combination would maximize Jane’s utility? HINT: Use utility maximizing  formula, MU1/P1 = MU2/P2 Product X Product Y Quantity MUx Quantity MUy 1 140 1 220 2 105 2 160 3 70 3 120 4 35 4 80 5 0 5 10 Group of answer choices 2 bags and 3 pairs of shoes 3 bags and 2 pairs of shoes 5 bags and 0 pair of shoes

Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 2QFR
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Jane has a budget of $200 to spend at the mall. Her two favorite items are bags (Product X) which cost $35 and shoes (Product Y) which cost $40. In the schedule below you can see the marginal utility for each of her favorite items. Which combination would maximize Jane’s utility?

HINT: Use utility maximizing  formula, MU1/P1 = MU2/P2

Product X Product Y
Quantity MUx Quantity MUy
1 140 1 220
2 105 2 160
3 70 3 120
4 35 4 80
5 0 5 10
Group of answer choices
2 bags and 3 pairs of shoes
3 bags and 2 pairs of shoes
5 bags and 0 pair of shoes 
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