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Relationship between Utility and ConsumptionThe table shows Kaito's utility from consuming protein ...

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Relationship between Utility and ConsumptionThe table shows Kaito's utility from consuming protein ...

Relationship between Utility and Consumption

The table shows Kaito's utility from consuming protein shakes and beef jerky.

Number of Protein Shakes	Total Utility from Protein Shakes	Number of Slices of Beef Jerky	Total Utility from Beef Jerky
0	0	0	0
1	21	1	49
2	32	2	71
3	38	3	81
4	39	4	94
5	35	5	100
6	28	6	101

If Kaito has an unlimited budget to spend on protein shakes and beef jerky, how many protein shakes and beef jerky will he consume? Assume that Kaito cannot consume more than 6 protein shakes and 6 slices of beef jerky.

▸ 4 protein shakes and 6 slices of beef jerky

▸ 4 protein shakes and 4 slices of beef jerky

▸ 1 protein shake and 4 slices of beef jerky

▸ 6 protein shakes and 6 slices of beef jerky

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

Read 87 times

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