Table 7-1 Keegan Has $30 to Spend on Pita Wraps and Bubble

question 345

Multiple Choice

Table 7-1
$\begin{array}{|c|c|c|c|}\hline \begin{array}{c}\text { Quantity of } \\\text { Pita Wraps }\end{array} & \text { Total Utility } & \begin{array}{c}\text { Quantity of } \\\text { Bubble Tea }\end{array} & \text { Total Utility } \\\hline 1 & 60 & 1 & 40 \\\hline 2 & 102 & 2 & 70 \\\hline 3 & 132 & 3 & 91 \\\hline 4 & 144 & 4 & 106 \\\hline 5 & 144 & 5 & 112 \\\hline 6 & 138 & 6 & 115 \\\hline 7 & 128 & 7 & 115 \\\hline\end{array}$ Keegan has $30 to spend on Pita Wraps and Bubble Tea. The price of a Pita Wrap is $6 and the price of a glass of Bubble Tea is $3. Table 7-1 shows his total utility from different quantities of the two items.
-Refer to Table 7-1.What is Keegan's optimal consumption bundle?

• A) 3 pita wraps and 3 bubble teas
• B) 3 pita wraps and 4 bubble teas
• C) 4 pita wraps and 2 bubble teas
• D) 5 pita wraps and 0 bubble teas

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Definitions:

Asset Turnover

A measure of how efficiently a company uses its assets to generate sales, calculated by dividing sales by total assets.

Net Sales

The total revenue from sales of goods or services, after deducting returns, allowances for damaged or missing goods, and discounts.

Asset Turnover

Asset turnover is a financial ratio that measures the efficiency of a company in using its assets to generate sales or revenue.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, representing the wear and tear or obsolescence of the asset.