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# \$7.00Economists refer to consumer satisfaction as utility and use "utils" to measure

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Economists refer to consumer satisfaction as utility and use "utils" to measure consumer utility. Jill enjoys cookies and milk as a snack. Below is a table showing Jill's utility from consuming cookies and milk: # of Cookies Total Utility (Utils) Glasses of Milk Total Utility (Utils) 0 0 0 0 1 300 1 600 2 500 2 700 3 600 3 720 4 650 4 730 If a cookie costs \$1 and a glass of milk is \$1, what combination of cookies and milk will provide Jill with the greatest total utility if she has \$5 to expend? Now suppose that a cookie costs \$1 and a glass of milk costs \$2. Is Jill in consumer equilibrium if she consumes one cookie and one glass of milk?

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\$7.00
Economists refer to consumer satisfaction as utility and use "utils" to measure
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