Suppose That Coke and Sprite Each Sell for $2 a Can

question 12

Multiple Choice

Suppose that Coke and Sprite each sell for $2 a can. Each month Joe buys 6 cans of Sprite and 30 cans of Coke. From this we can infer that:

• A)Joe is buying too many cans of Sprite.
• B)Joe is buying too many cans of Coke.
• C)Joe is maximizing his utility if his marginal utility from the 6^th can of Sprite he buys is less than his marginal utility from the 30^th can of Coke he buys.
• D)Joe is maximizing his utility if his marginal utility from the 6^th can of Sprite he buys is equal to his marginal utility from the 30^th can of Coke he buys.

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Definitions:

Softwood

Wood from gymnosperm trees, typically less dense than hardwood, used in construction, paper manufacturing, and furniture.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize nutrients from carbon dioxide and water, producing oxygen as a byproduct.

Support

The action or structure that holds something steady or strengthens it.

Storage

The action or method of retaining or containing something for future use, typically referring to data, energy, or physical goods.