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Directions: You are standing in line at a pizza restaurant with [tex]$\$[/tex]10[tex]$ in your pocket. You are really hungry and want to get the most (maximum utility) out of your dinner money. Your job is to decide what to order. You can order any combination of items as long as you stay within your $[/tex]\[tex]$10$[/tex] budget. The menu has the following items:

- Salad [tex]$=\$[/tex]4[tex]$
- Pizza slice $[/tex]=\[tex]$3$[/tex]
- Medium drink [tex]$=\$[/tex]2[tex]$
- Cookie $[/tex]=\[tex]$1$[/tex]

Before you order, think about how much enjoyment each item has for you. You may not like vegetables, or you may be really thirsty! Make sure to consider how much a second portion of each item is worth considering that you will likely have to forego another item that you may also like in order to get it. So, if you order a soda and two slices of pizza, your decision shows that the marginal utility, or amount of enjoyment, that the second slice of pizza brings is greater than the utility of a salad. By the way, this restaurant does not serve tap water!

Complete the chart below. Then, in the last column, explain why you made the selections you did as well as why you left anything off your order (if appropriate). Be sure to use complete sentences and proper grammar.

\begin{tabular}{|l|l|l|l|l|}
\hline
Item & \begin{tabular}{l}
Cost \\
per unit
\end{tabular} & \begin{tabular}{l}
Number \\
of units
\end{tabular} & \begin{tabular}{l}
Total \\
price
\end{tabular} & Why you made the decision \\
\hline
Salad & [tex]$\$[/tex]4[tex]$ & & & \\
\hline
\begin{tabular}{l}
Pizza \\
slice
\end{tabular} & $[/tex]\[tex]$3$[/tex] & & & \\
\hline
\begin{tabular}{l}
Medium \\
drink
\end{tabular} & [tex]$\$[/tex]2[tex]$ & & & \\
\hline
Cookie & $[/tex]\[tex]$1$[/tex] & & & \\
\hline
\end{tabular}



Answer :

GinnyAnswer
To solve this problem, we need to maximize our enjoyment (utility) from spending our [tex]$\$[/tex]10[tex]$ budget on the given menu items. Let's go through each step of the decision-making process and fill out the chart. ### Chart Completion First, we list the details of each menu item, including their cost and the number of items we decide to buy based on our preferences and budget constraints: \[ \begin{array}{|l|l|l|l|l|} \hline \text{Item} & \text{Cost per unit} & \text{Number of units} & \text{Total price} & \text{Why you made the decision} \\ \hline \text{Salad} & \$[/tex]4 & 0 & \[tex]$0 & \text{I don't like vegetables much.} \\ \hline \text{Pizza slice} & \$[/tex]3 & 0 & \[tex]$0 & \text{Pizza is my favorite, but in this case, I chose something else.} \\ \hline \text{Medium drink} & \$[/tex]2 & 0 & \[tex]$0 & \text{Medium affinity for drinks, chose something else this time.} \\ \hline \text{Cookie} & \$[/tex]1 & 10 & \[tex]$10 & \text{I enjoy cookies quite a lot and they provide the best combination of utility and cost, allowing me to stay within the budget.} \\ \hline \end{array} \] ### Explanation of Decisions 1. Salad: Although salads cost \$[/tex]4 each, I have a low utility for them (I don't enjoy them much). Therefore, I chose not to spend any money on salads.

2. Pizza slice: While pizza slices are a significant source of utility for me, costing \[tex]$3 each, I chose not to purchase any in this particular selection to maximize overall utility. 3. Medium drink: With each drink costing \$[/tex]2, I have a medium affinity for them. However, I chose to allocate my budget differently to achieve higher utility.

4. Cookie: Priced at \[tex]$1 each, I can buy 10 cookies with my \$[/tex]10 budget. I have a high utility for cookies, and this choice allows me to maximize my enjoyment, resulting in the best combination of cost and utility.

#### Final Thoughts:
By choosing 10 cookies, I effectively use up my entire budget of \$10, optimizing for the highest utility possible given my personal preferences. This selection provides the most enjoyment out of my dinner money, ensuring maximum satisfaction with the resources available.

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