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# 3. State whether the consumer in each of the following situations

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3. State whether the consumer in each of the following situations is maximizing utility. If she is not, state what adjustments she should make to maximize utility.

a. Selma consumes 2 sandwiches and 3 Coca-colas. The last sandwich gives Selma 25 units of utility and the last Coca-cola gives her 5 units of utility. Sandwiches cost \$5 apiece and Coca-colas cost \$1 apiece.

b. Kristin eats 2 Twix bars and 1 bag of M&Ms. The last Twix bar gives Kristin 10 units of utility and the last bag of M&Ms gives her 30 units of utility. Twix bars cost \$0.50 apiece and one bag of M&Ms costs \$0.75.

c. Jackie reads another chapter in her novel that gives her 400 units of utility at a cost of 30 minutes of her time and another chapter in her economics text that gives her 1,500 units of utility at a cost of 1 ½ hours of her time.
Submitted: 3 years ago.
Category: Homework
Expert:  Joanne replied 3 years ago.

Joanne :

hi

Joanne :

Joanne :

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Experience: BSc (Hons) Political Science
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