26. Danny has $12 to spend on two goods: pies and soda. The price of a pie is $4, and the price of a can of soda is $2. To maximize his utility, Danny buys A) the combination that gives him equal total utility from pies and soda B) 2 pies and 2 cans of soda C) oniy sodas because they are iess expensive D) the combination that gives him the same marginai utility per doliar spent on pies as on soda

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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26. Danny has $12 to spend on two goods: pies and
soda. The price of a pie is $4, and the price of a can
of soda is $2. To maximize his utility, Danny buys
A) the combination that gives him equal total utility
from pies and soda
B) 2 pies and 2 cans of soda
C) oniy sodas because they are iess expensive
D) the combination that gives him the same marginai
utility per doillar spent on pies as on soda
Transcribed Image Text:26. Danny has $12 to spend on two goods: pies and soda. The price of a pie is $4, and the price of a can of soda is $2. To maximize his utility, Danny buys A) the combination that gives him equal total utility from pies and soda B) 2 pies and 2 cans of soda C) oniy sodas because they are iess expensive D) the combination that gives him the same marginai utility per doillar spent on pies as on soda
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