Question

A consumer with an income of $30 is faced with choosing between yo-yo's and basketballs which are priced at $2 and $10 respectively. The total utility derived from each of the two goods is as follows( see table below).

How many yo-yo's and basketballs will be consumed each week?  

Yo-Yo's
Qty	1	2	3	4	5
Total Utility of Yo Yo's	10	18	25	30	34
Basketballs
Qty	1	2	3	4	5
Total Utility of Basketballs	40	60	68	70	71

A. 5 yo-yo's ; 2 basketballs

B. 4 basketballs; 1 yo-yo

C. none of the above

D. 2 yo-yo's and 4 basketballs

E. 3 basketballs and 0 yo-yo's

F. 3 basketballs and 0 yo-yo's

Answer 1

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