Table 10-2 Table 10-2 Above Shows Keira's Utility from Soup and Sandwiches

question 206

Multiple Choice

Table 10-2

Table 10-2 above shows Keira's utility from soup and sandwiches. The price of soup is $2 per cup and the price of a sandwich is $3. Keira has $18 to spend on these two goods.
-Refer to Table 10-2.If Keira maximizes her utility, how many units of each good should she buy?

• A)1 cup of soup and 5 sandwiches
• B)3 cups of soup and 4 sandwiches
• C)6 cups of soup and 2 sandwiches
• D)4 cups of soup and 3.5 sandwiches

---

Definitions:

Net Cash Inflow

The total amount of cash received minus the total amount of cash spent over a period.

Initial Investment

The initial amount of money spent to purchase an asset or start a project.

Annuities

Financial products that provide a series of payments over time, often used for retirement income.

Internal Rate

Often refers to the internal rate of return (IRR), which is a metric used to evaluate the profitability of potential investments.