Question

Potatoes cost Janice $1 per kilogram, and she has $5.00 that she could possibly spend on potatoes or other items. If she feels that the first kilogram of potatoes is worth $1.50, the second kilogram is worth $1.14, the third kilogram is worth $1.05, and all subsequent kilograms are worth $0.30, how many kilograms of potatoes will she purchase? What if she only had $2 to spend? Janice will purchase with her original $5 of income. Janice will purchase when her income is $2.

Answer 1

When income=$5:

Janice will purchase 3 kilograms of potatoes.

When income=$2:

Janice will purchase 2 kilograms of potatoes.

Reason-

Janice will purchase potatoes until the value of potatoes Janice feels is more than the cost of the potatoes and she has income to purchase first kilogram of potatoes.

When income is $5:

She purchases 1kg of potatoes as $1.50>$1

she purchase 2nd kg of potato as $1.14>$1

she purchases 3rd kg of potato as $1.05>$1

But she won't purchase any further kilograms of potato as it is not worth it as $0.30<$1. Total $3 will be spend out of $5 income.

When income is $2:

She purchases 1kg of potatoes as $1.50>$1

she purchase 2nd kg of potato as $1.14>$1

She won't purchase any further as she has spent all her income.