Table: Take-Out and Coffee Refer to the Table

question 104

Essay

Table: Take-out and Coffee $$\begin{array} { c c c c } \hline \text { Take-out Meals } & \text { Marginal Utility of Take-out } & \text { Lattés } & \text { Marginal Utility of Lattés } \\\hline 1 & \$ 20 & 1 & \$ 5 \\2 & 15 & 2 & 4.50 \\3 & 12 & 3 & 3.50 \\4 & 10.50 & 4 & 2 \\5 & 3.50 & 5 & 1 \\\hline\end{array}$$
Refer to the table. The table shows the marginal utility a consumer receives from purchasing take-out food and lattés each week. The price of a take-out meal is $15, and the price of a latté is $5. What is the utility-maximizing bundle of take-out and lattés for a consumer who has a weekly income of $45 (all of which will be spent on take-out and lattés)? What will be the bundle if income increases to $75?

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