Terence Has $50 Per Week to Spend on Subway Sandwiches

question 296

Multiple Choice

Terence has $50 per week to spend on Subway sandwiches and milkshakes.The price of a Subway sandwich is $5 and the price of a milkshake is $4.He buys 6 sandwiches and 5 milkshakes.The marginal utility of the 6th sandwich = 25 and the marginal utility of the 5th milkshake = 24.Which of the following is true?

• A)He is not maximizing his utility and should buy more milkshakes.
• B)He is maximizing his utility.
• C)He is not maximizing his utility and should buy more Subway sandwiches.
• D)He is not maximizing his utility because he is not spending all of his income.

---

Definitions:

Tibial Tuberosity

A large protrusion on the anterior part of the tibia, where the patellar ligament attaches.

Femur

The longest and strongest bone in the human body, extending from the hip to the knee.

Patellar Surface

The patellar surface is the area on the distal end of the femur where the patella (kneecap) articulates or makes contact.

Tibia

A large bone located in the lower leg, also known as the shinbone, which bears much of the body's weight.