Suppose that you consume only pizza, which costs $4 per slice, and Diet Pepsi, which costs $2 each. The table above gives your utility from consuming these two goods. If your income is $20, which of the following consumption combinations will you choose?

A. 2 slice of pizza and 6 Diet Pepsis
B. 3 slices of pizza and 4 Diet Pepsis
C. 5 slices of pizza and no Diet Pepsi
D. 4 slices of pizza and 2 Diet Pepsis

Answer: B. 3 slices of pizza and 4 Diet Pepsis

Economics

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