Lilly Davis Has $5 Per Week to Spend on Any

question 98

Essay

Lilly Davis has $5 per week to spend on any combination of ice cream and candy.The price of an ice cream cone is $2 and the price of a candy bar is $1.The table below shows Lilly's utility values.Use the table to answer the questions that follow the table.

a.Complete the table by filling in the blank spaces.
b.Suppose Lilly purchases 2 ice cream cones and 1 candy bar.Is she consuming the optimal consumption bundle? If so, explain why.If not, what combination should she buy and why?

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Definitions:

Mindset

A set of attitudes or dispositions that shapes one's perceptions and behaviors.

Self-confidence

The belief in one's own abilities and capacities to achieve goals or handle situations.

Community-based Interventions

Programs designed to address and solve issues within a specific community by involving local members and resources, focusing on preventive measures and social change.

Leisure Work

Activities performed outside of one's professional responsibilities, often for relaxation, enjoyment, or personal satisfaction.