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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Definitions:

Episodes

Periods or occurrences of a specific event or condition, commonly used in the context of medical or psychological events.

Forgetful

Characterized by a loss of memory or the inability to remember things; often temporary or situational.

Neuromuscular System

The combined system of nerves and muscles in the body, responsible for movement and coordination.

Reflex Responses

Automatic reactions to stimuli that do not require conscious thought, integral to the nervous system's function.