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Sean has $18 to spend at the cafeteria on hotdog that cost $2 and cake that cost $3 per slice. Prepare the consumption possibilities table:

  1. Sean has $18 to spend at the cafeteria on hotdog that cost $2 and cake that cost $3 per slice.
  2. Prepare the consumption possibilities table:
Quantity of Cake Quantity of Hotdog

  1. Complete the table below:
Quantity of Cake Total Utility Marginal Utility Marginal Utility per Dollar Quantity of Hotdog Total Utility Marginal Utility Marginal Utility per Dollar
0 0 0 0
1 24 1 12
2 42 2 20
3 54 3 26
4 63 4 30
5 69 5 32

  1. What combination of cake and hotdog would maximise his utility?_______________________

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