Kathryn is shopping and needs to choose a combination of pants and shirts to buy. She has a total of $24 to spend. Each pair of pants costs $8 while each shirt costs $4. To help her, she makes a list of her total utility for different quantities of pants and shirts which is given below. If Kathryn wants to maximize her utility, how many pairs of pants and shirts should she buy?

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Answer:

Total Utility from bundle A= 84

Total Utility from bundle B= 59+35= 94

Total Utility from bundle C= 31+66= 97

Total Utility from bundle D= 93

So he will buy 1 pairs of pants and 4 shirts.( Since her utility is maximized at bundle C)