At His Current Level of Consumption, Evan Gets Twice as Much

question 8

Multiple Choice

At his current level of consumption, Evan gets twice as much marginal utility from an additional bottle of water as that from an additional bottle of soda. If the price of soda is $1.00 per bottle, then Evan is maximizing utility if the price of a bottle of water is:

• A)$1.00
• B)$1.50
• C)$2.00
• D)$0.50

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