Use the Following to Answer Question

question 30

Multiple Choice

Use the following to answer question:
-(Table: Utility from Burgers and Milkshakes) Use Table: Utility from Burgers and Milkshakes.David's marginal utilities for milkshakes and burgers are given in the table.The price of milkshakes is $2,and the price of burgers is $5.If David's income is $22,to maximize his utility,he buys _____ shake(s) and _____ burger(s) .

• A)1;1
• B)6;0
• C)5;1
• D)6;2

---

Definitions:

Market Equilibrium

A situation where the quantity of a good or service supplied equals the quantity demanded at a specific price level.

Excess Demand

A scenario in which the current price of a product or service leads to a demand that surpasses its available supply.

Excess Supply

Occurs when the quantity of a good or service offered by producers exceeds the quantity demanded by consumers at the current price.

Excess Supply

A situation where the quantity of a good or service offered for sale by producers exceeds the quantity demanded by consumers at the current price.