Question

"" Josh's weekly budget for lunch is $24. He eats only pizza and burgers. Each pizza costs $6 and each burger costs $3. Josh knows that 2 pizzas and 4 burgers will give him a utility of 8. What is Josh’s utility-maximizing point?

Answer 1

maximum utilized point is 2 pizza and 4 burger

Step-by-step explanation:

given data

budget = $24

pizza cost = $6

burger cost = $3

pizza = 2

burger = 4

utility = 8

to find out

utility maximizing

solution

we consider if full budget spent on pizza than

pizza will be = 24/6 = 4 pizza

and if full budget spent on burger than

burger will be = 24 / 3 = 8 burger

and

we have given 2 pizza and 4 burger so

calculate expenditure by that

by 2 pizza cost = 2 × 6 = 12

by 4 burger cost = 4 × 3 = 12

so total expenditure cost is 12 + 12 = $24

so we see here total expenditure is equal to total budget

so maximum utilized point is 2 pizza and 4 burger lies there for utility of 8