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?

---

Definitions:

Positron Emission Tomography

An imaging technique used to observe metabolic processes in the body as an aid to the diagnosis of disease.

Transcendental Meditation

A form of silent mantra meditation aimed at promoting relaxation and reducing stress.

Altered State

A condition in which the normal functioning of consciousness is changed, often experienced during meditation, trance, sleep, or under the influence of psychoactive substances.

Consciousness

The awareness of internal and external stimuli, enabling perception, thought, and self-awareness.