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:

Financial Institution

An organization that provides financial services to its clients or members, such as banks, credit unions, and insurance companies.

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The interest rate charged by central banks on loans to commercial banks, influencing monetary policy and economic conditions.

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The interest rate at which depository institutions lend reserves to other depository institutions overnight, crucial for monetary policy in the United States.