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2 September, 18:53

Jennifer gets 5 utils from consuming her first slice of pizza, 4 utils from the second slice, 3 utils from the third, etc. Each slice of pizza costs $1. She also gets 4 utils from her first soda, 2 utils from the second, and 1 util from the third. Each soda costs $1. If Jennifer only has $4 to spend and spends it all on pizza and sodas, what is her total utility from the purchase if she wants to maximize her total utility?

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  1. 2 September, 21:57
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    The maximum utility is 16 utils

    Explanation:

    To maximize the utility we must choose the items that gave most utils.

    Each item cost $1 and we have $4 to spend.

    1 slice of pizza: 5 utils

    2 slice of pizza: 4 utils

    3 slice of pizza: 3 utils

    1 soda: 4 utils

    2 soda: 3 utils

    3 soda: 2 utils

    If we display them in a decrease order and we choose the first four rows.

    1 slice of pizza: 5 utils (1 dollar)

    2 slice of pizza: 4 utils (1 dollar)

    1 soda: 4 utils (1 dollar)

    3 slice of pizza: 3 utils (1 dollar)

    2 soda: 3 utils

    3 soda: 2 utils

    Highlighted are the ones we must get to get the maximum utility.

    The maximum utility is 5 utils + 4 utils+4 utils+3 utils = 16 utils
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