The Following Table Shows the Utility (Measured in Dollars)which Lisa

question 92

Multiple Choice

The following table shows the utility (measured in dollars) which Lisa derives from water (in 50 litre drums) and diamonds (uncut 1 carat stones) .

-Refer to the above information to answer this question.If the price of both water and diamonds is $100 per unit,and Lisa has $500 to spend,how many units of each would she purchase?

• A)5 waters.
• B)4 waters and 1 diamond.
• C)3 waters and 2 diamonds.
• D)2 waters and 3 diamonds.
• E)1 water and 4 diamonds.

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Definitions:

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