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Danny Has $12 to Spend on Two Goods: Pies and Soda

Question 119

Multiple Choice

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) only sodas because they are less expensive.
D) the combination that gives him the same marginal utility per dollar spent on pies as on soda.

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