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User Bob Bill
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1 Answer

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Answer:

2 colas and 4 hot dogs

Explanation:

We presume the units of total satisfaction are additive for the two food items.

The maximum number of colas Joe can buy with his $8 is $8/($2/cola) = 4 colas. Since a cola costs twice what a hot dog costs, Joe can give up 1 cola and buy 2 hot dogs. Possible purchases of (colas, hotdogs) for $8 can be ...

(0, 8), (1, 6), (2, 4), (3, 2), (4, 0)

Of course, either the number of colas or the number of hot dogs (or both) could be less than these values.

The corresponding satisfaction units are added in the attached table. These combinations are highlighted in green. The maximum number of satisfaction units is found to be for 2 colas and 4 hot dogs. (49 satisfaction units)

_____

Satisfaction values below and to the right of the highlighted diagonal cannot be purchased with $8.

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User Fairwinds
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