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Joaquin Consumes Pizza and Beer

Question 26

Multiple Choice

Joaquin consumes pizza and beer. His utility function is Joaquin consumes pizza and beer. His utility function is where P is the number of pizzas and B is the number of glasses of beer. Joaquin has $30, and he plans to spend all of it on pizza and beer today. The price of one pizza is $10 and the price of beer is $3 per glass. Joaquin is allowed to purchase fractions of a pizza by buying individual slices at the same average price (thus, one quarter of a pizza would cost $2.50) . Joaquin's optimal bundle is ____ pizzas and ____ beers. A) 0.5; 10 B) 1.5; 5 C) 2.5; 4 D) 3; 3 where P is the number of pizzas and B is the number of glasses of beer. Joaquin has $30, and he plans to spend all of it on pizza and beer today. The price of one pizza is $10 and the price of beer is $3 per glass. Joaquin is allowed to purchase fractions of a pizza by buying individual slices at the same average price (thus, one quarter of a pizza would cost $2.50) . Joaquin's optimal bundle is ____ pizzas and ____ beers.


A) 0.5; 10
B) 1.5; 5
C) 2.5; 4
D) 3; 3

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