Question

Suppose after paying bills and setting aside some money for retirement, Joana has $130 left to spend on just two goods: concerts and books. For simplicity, we’ll assume concert tickets cost $55 and books cost $10. Which of the following combination of goods could be her utility-maximizing bundle?

A 3 concert tickets and 2 books
B 2 concert tickets and 2 books
C 1 concert tickets and 5 books
D 1 concert tickets and 10 books
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