Question 42 – 1.2 Individual economic decision making (A-level only) - Questions

Clara has a weekly budget of $£18\,$ to allocate between takeaway gourmet coffees (Good $C$ ) and artisanal doughnuts (Good $D$ ). The price of a coffee is $P_C = £3$ , and the price of a doughnut is $P_D = £2$ . Clara aims to maximise her total utility.

Her marginal utilities ( $M U$ ) from consuming successive units of each good are shown in the table below:

Quantity	Marginal Utility of Coffee ( $MU_C$ )	Marginal Utility of Doughnut ( $MU_D$ )
1	42	24
2	36	20
3	30	16
4	24	12
5	18	8
6	12	4

To maximise her total utility, which combination of coffees and doughnuts should Clara purchase?

$2$ coffees and $6$ doughnuts

$3$ coffees and $2$ doughnuts

$4$ coffees and $3$ doughnuts

$5$ coffees and $4$ doughnuts

Her marginal utilities ( $M U$ ) from consuming successive units of each good are shown in the table below:

Quantity	Marginal Utility of Coffee ( $MU_C$ )	Marginal Utility of Doughnut ( $MU_D$ )
1	42	24
2	36	20
3	30	16
4	24	12
5	18	8
6	12	4

To maximise her total utility, which combination of coffees and doughnuts should Clara purchase?

$2$ coffees and $6$ doughnuts

$3$ coffees and $2$ doughnuts

$4$ coffees and $3$ doughnuts

$5$ coffees and $4$ doughnuts

1.2 Individual economic decision making (A-level only)

Question 8

1.2 Individual economic decision making (A-level only)

Question 8

1.2 Individual economic decision making (A-level only)

Question 8

1.2 Individual economic decision making (A-level only) Questions

1.2 Individual economic decision making (A-level only)

Question 8

1.2 Individual economic decision making (A-level only) Questions