Pizza Pepsi -Elaine Spends $10 a Week on Pizza and Pepsi. the Pizza

question 64

Multiple Choice

Pizza Pepsi

-Elaine spends $10 a week on pizza and Pepsi. The price of pizza is $2 a slice and the price of a Pepsi is $2. The table shows Elaine's total utility from pizza and Pepsi. Elaine maximizes her total utility by buying ________ slices of pizza and ________ Pepsis a week.

• A) 5; 0
• B) 0; 5
• C) 3; 2
• D) 2; 3

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Definitions:

Economic Profits

The variance between total income and total expenses of a business, factoring in both clear and hidden costs.

Constant-cost Industry

An industry where input costs remain unchanged as industry output changes, leading to a flat supply curve.

Industry Supply

The total output of goods or services that producers in an industry are willing and able to sell at different price levels, during a certain time period.

Long-run Supply Curve

A graphical representation showing the relationship between market price and the amount of goods supplied by producers, considering all factors of production can be varied.