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.
Correct Answer:

Verified
Correct Answer:
Verified
Q114: Magazines Chocolate bars<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt="Magazines Chocolate
Q115: Michael consumes only steak and lobster. Suppose
Q116: A behavioral economist will explain Tom's donation
Q117: If it costs $6.00 to go to
Q118: Katie finds that the marginal utility from
Q120: Ice cream Romance novels<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt="Ice
Q121: Robinson spends all his income on mangos
Q122: Marginal utility theory predicts that if a
Q123: Which of the following is NOT an
Q124: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -The table above