What is the fastest roller coaster in Singapore?

Can someone please explain this economics problem? Maximizing utility, roller coaster rides, etc?

  • http://imageshack.us/photo/my-images/190/17img.jpg/ Jackson has $10, which he plans to allocate among three rides at the amusement park. Each ride on the Roller Coaster costs $2.00, on the Bumper Cars, $1.00, and on Splatter Mountain, $3.00. The Table above gives the total utility Jackson receives from the three rides. 17. Given Jackson’s budget constraint, what combination of rides will maximize Jackson’s utility? a) 3 Roller Coaster, 1 Bumper Car, and 1 Splatter Mountain. b) 3 Splatter Mountain and 1 Bumper Car. c) 2 Roller Coaster rides, 3 Bumper Car rides and 1 Splatter Mountain ride. d) 3 Roller Coaster rides and 4 Bumper Car rides. e) We don’t have enough information to answer this question. I got C) for 17, but I'm stuck on the other two. 18. Given Jackson’s budget constraint, what is the maximum utility he can receive from amusement park rides? a) We don’t have enough information to answer this question. b) 300 utils c) 890 utils. d) 850 utils e) 550 utils 19. Using the Table above, if Jackson has only three dollars to spend what combination of rides will maximize his utility? a) He will ride Splatter Mountain one time. b) He will ride the Bumper Cars three times. c) He will ride the Roller Coaster once and the Bumper Cars twice once. d) He is indifferent between b) and c) because they yield the same utility. e) He can’t maximize his utility with just $3.00.

  • Answer:

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