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Assume the price of a cup of coffee is $0.50, the price of a cupcake is $0.50 and the individual has a budget of $1.50.

Assume the price of a cup of coffee is $0.50, the price of a cupcake is $0.50 and the individual has a budget of $1.50. Assuming they maximize their utility, how many of each good will they purchase?

Number of coffee cups Total utility Number of cupcakes Total Utility
1 20 1 25
2 35 2 45
3 47 3 59
4 57 4 65
5 63 5 67

Question 15 options:

4 cups of coffee and 2 cupcakes

1 cup of coffee and 2 cupcakes

2 cups of coffee and 4 cupcakes

answer not given

5 cups of coffee and 4 cupcakes

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