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The table below lists Lauren's total utility from consuming sandwiches and bowls of soup. The price of a sandwich is $5 and the price of
The table below lists Lauren's total utility from consuming sandwiches and bowls of soup. The price of a sandwich is $5 and the price of a bowl of soup is $2.
| Quantity of Sandwiches | Total Utility from Sandwiches | Quantity of Soup | Total Utility from Soup |
|---|---|---|---|
| 1 | 25 | 1 | 30 |
| 2 | 45 | 2 | 54 |
| 3 | 60 | 3 | 72 |
| 4 | 70 | 4 | 88 |
| 5 | 75 | 5 | 98 |
| 6 | 75 | 6 | 104 |
| 7 | 70 | 7 | 106 |
- Assume Lauren has $27 to spend. Her optimal consumption bundle is sandwiches and bowls of soup.
- If Lauren's budget increases to $39, her new optimal consumption bundle is sandwiches and bowls of soup.
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Principles of Auditing and Other Assurance Services
Authors: Ray Whittington, Kurt Pany
19th edition
978-0077804770, 78025613, 77804775, 978-0078025617
