(Table) Using the Information in the Table, Assume the Consumer

question 222

Multiple Choice

(Table) Using the information in the table, assume the consumer has a weekly budget of $3; the price of a root beer is $1 and the price per candy bar is $0.50. If the consumer maximizes utility, total utility is _____ utils.
$\begin{array}{l}\hline \quad \quad \quad {\text { Root Beer }} \quad \quad \quad \quad \quad \quad \quad \quad {\text { Candy Bars }} \\\begin{array}{|c|c|c|c|}\hline \text { Quantity } & \text { Total Utility } & \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 & 0 & 0 \\\hline 1 & 60 & 1 & 80 \\\hline 2 & 110 & 2 & 150 \\\hline 3 & 150 & 3 & 200 \\\hline 4 & 180 & 4 & 230 \\\hline 5 & 200 & 5 & 240 \\\hline 6 & 210 & 6 & 240 \\\hline\end{array}\end{array}$

• A) 290
• B) 240
• C) 260
• D) 350

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Definitions:

Latitude of Acceptance

The range of ideas that an individual sees as reasonable or worthy of consideration.

Social Psychology

A branch of psychology that deals with social interactions, including their origins and their effects on the individual.

Person Perception

The process by which individuals form judgments and impressions of other people.

Confirmation Biases

A natural tendency to look for, make sense of, value, and keep in mind details that confirm one's established beliefs or speculations.