-The Above Table Shows Tammy's Total Utility from Videos and CDs

question 363

Multiple Choice

-The above table shows Tammy's total utility from videos and CDs. If Tammy has $70 to spend on videos and CDs and if the price of a video is $10 and the price of a CD is $20, then the maximum utility Tammy can attain is

• A) 450.
• B) 1280.
• C) 1150.
• D) 1200.

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Definitions:

Utility Function

A mathematical representation expressing an individual's preference ordering over a set of goods or services, used in economics to model decision making under uncertainty.

Min

Often short for "minimum," it represents the smallest or least possible amount or degree of a certain quantity or measure.

Numeraire Good

A benchmark or standard commodity against which the relative price of all other goods and services is measured in an economy.

Initial Endowment

The initial set of assets, goods, or resources that individuals or entities possess before entering into any economic transactions or exchanges.