Assume that pizza costs $1 per slice and a large pepsi costs $2. with $20 to spend, what consumption mix will maximize satisfaction?

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Business

Dominic Fox

9 December, 15:26

Assume that pizza costs $1 per slice and a large pepsi costs $2. with $20 to spend, what consumption mix will maximize satisfaction?

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Ruth Pugh · Answer 1

The choice of how many slices of pizza and/or how many large pepsi is to be bought comes from the idea of which of the two products will give more satisfaction to the consumer.

It is a common knowledge that for several number of pizza, a person can only consume minimal amount of pepsi. For maximum satisfaction, a combination of 2:1 may be used. That is, for very two slices of pizza, one may buy a large pepsi costing $2.

Given that the money available is $20 then, 5 sets of 2 slices of pizza and large pepsi may be purchased.