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Question
Assume that Jack has the preferences shown in the above table. Also assume that the price of a can of Pepsi is $3.00 and that the price of a slice of pizza is $1.00. If he has $16 available to spend, what combination of Pepsi and pizza will be his consumer optimum?
A) 4 cans of Pepsi, 1 slice of pizza
B) 3 cans of Pepsi, 2 slices of pizza
C) 2 cans of Pepsi, 4 slices of pizza
D) 4 cans of Pepsi, 4 slices of pizza
Answer
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