-Assume That Jack Has the Preferences Shown in the Above

question 116

Multiple Choice

-Assume that Jack has the preferences shown in the above table. Also assume that the price of a can of Pepsi is $3.00 and that the price of a slice of pizza is $1.00. If he has $16 available to spend, what combination of Pepsi and pizza will be his consumer optimum?

• A) 4 cans of Pepsi, 1 slice of pizza
• B) 3 cans of Pepsi, 2 slices of pizza
• C) 2 cans of Pepsi, 4 slices of pizza
• D) 4 cans of Pepsi, 4 slices of pizza

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Definitions:

Maslow Hierarchy

A theory in psychology proposed by Abraham Maslow that categorizes human needs into five levels, from basic physiological needs to self-actualization.

Self-actualization

The act of fulfilling or realizing one's abilities and potential, regarded as an innate motivation.

Social

Pertains to the interaction and communication among individuals, communities, or organizations to build relationships or share information.

Physiological

Concerning the area of biology that studies the standard functions of living entities and their elements.