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-Lisa Spends All Her Income on Pizzas and DVDs

Question 240

Multiple Choice

  -Lisa spends all her income on pizzas and DVDs. The above table shows Lisa's marginal utility for pizza and marginal utility for DVDs. If the price of a pizza is $10 and the price of a DVD is $10 and Lisa has $60 to spend on the two goods, what combination of pizza and DVDs will maximize her utility? A)  2 DVDs and 4 pizzas B)  3 DVDs and 5 pizzas C)  4 DVDs and 2 pizzas D)  3 DVDs and 3 pizzas
-Lisa spends all her income on pizzas and DVDs. The above table shows Lisa's marginal utility for pizza and marginal utility for DVDs. If the price of a pizza is $10 and the price of a DVD is $10 and Lisa has $60 to spend on the two goods, what combination of pizza and DVDs will maximize her utility?


A) 2 DVDs and 4 pizzas
B) 3 DVDs and 5 pizzas
C) 4 DVDs and 2 pizzas
D) 3 DVDs and 3 pizzas

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