The Table Below Shows the Quantities of Toffee Bars and Bags

question 19

Multiple Choice

The table below shows the quantities of toffee bars and bags of cashews that a consumer could consume over a 1-week period.
Toffee (bars) Cashews (bags)
TABLE 6-1
-Refer to Table 6-1.If the price of toffee bars is $1 each,bags of cashews are $2 each,and this consumer has $7 per week to spend on these two snacks,how many of each will he/she purchase to maximize utility?

• A)0 toffee bars and 3 bags of cashews
• B)1 toffee bars and 3 bags of cashews
• C)2 toffee bars and 2 bags of cashews
• D)3 toffee bars and 2 bags of cashews
• E)7 toffee bars and 0 bags of cashews

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Definitions:

Interest Charged

The cost incurred for borrowing money, typically expressed as a percentage rate over a period of time.

IRS

The Internal Revenue Service, a U.S. federal agency responsible for the collection of taxes and enforcement of tax laws.

3%

An interest rate, tax rate, or other percentage that signifies a portion or rate out of a hundred.

Failure to File Penalty

A penalty imposed by tax authorities on taxpayers who do not file their tax returns by the due date.