Question

The following table shows​ Madison's utility

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from consuming popcorn and Coke. Suppose that Madison has income of

​$34.0034.00​,

the price of popcorn is

​$4.004.00​,

and the price of Coke is

​$9.009.00.

If Madison wants to maximize her​ utility, how much popcorn and Coke should she​ buy?

	Popcorn	Coke
Quantity	Marginal Utility	Marginal Utility
1	192192	144144
2	144144	108108
3	9696	7272
4	4848	3636
5	2424	1818
6	1212	99

Madison should buy

nothing

boxes of popcorn and

nothing

cans of Coke. ​(Enter your responses as​ integers.)

Answer 1

The above table shows that when consumer consume 4 units of popcorn and 2 units of coke not only MUp/Pp equals MUc/Pc but entire income of $34 is spent as well [(4*$4)+(2*$9)].