For lunch, Wendy eats either a salad or a fruit smoothie. Her weekly food budget is $48. Each salad costs $6 and each smoothie costs $3. When deciding how much of each good to buy, Wendy knows that 2 salads and 4 smoothies will give her a utility of 8. What is Wendy’s utility-maximizing point?
a. 1 salad, 14 smoothies
b. 6 salads, 4 smoothies
c. 5 salads, 6 smoothies
d. 4 salads, 8 smoothies
d. 4 salads, 8 smoothies
Wendy’s utility-maximizing point is 4 salads and 8 smoothies.
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