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QUESTION
Shaniq eats only pizza and salad. The table above shows her marginal utility from some combinations of pizza and salad. She has $100 to spend on pizza and salad. The price of a pizza is $10 per pizza and the price of a salad is $5 per salad.
1)Can Shaniq buy 5 pizzas and 6 salads? Can she buy 7 pizzas and 8 salads? Can she buy 8 pizzas and 4 salads?
2)If Shaniq is consuming 6 pizzas and 8 salads, to increase her total utility should she increase her consumption of pizza and decrease her consumption of salad, decrease her consumption of pizza and increase her consumption of salad, or not change her consumption of pizza and salad? If Shaniq is consuming 7 pizzas and 6 salads, to increase her total utility should she increase her consumption of pizza and decrease her consumption of salad, decrease her consumption of pizza and increase her consumption of salad, or not change her consumption of pizza and salad?
3)Is it possible to determine what combination of pizza and salad maximizes Shaniq’s utility? If it is possible, tell what the utility-maximizing combination is; if it is not possible, BRIEFLY explain why it is not.
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