Table 7-1 Keegan Has $30 to Spend on Pita Wraps and Bubble

question 123

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.If Keegan can drink all the bubble tea he wants for free,how many glasses will he consume?

• A)4 glasses
• B)5 glasses
• C)6 glasses
• D)7 glasses

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Definitions:

Monopolistically Competitive

Describes a market structure where many firms sell products or services that are similar but not identical, allowing for competition but also some level of pricing power.

Brand Names

Identifiers given to products by manufacturers to distinguish them from competitors' products.

Consumption Choices

The decisions made by individuals or households regarding which products or services to purchase with their limited resources.

Zero Economic Profits

A condition where a firm covers all its opportunity costs perfectly, making no extra returns above these costs.