Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit.Table 19.3Michael's Utility ScheduleUnits of ColaTU of ColaMU of ColaUnits of PretzelsTU of PretzelsMU of Pretzels14040130302 322 2039624366164112 478 5124 584 Refer to Table 19.3. If Michael has $28 dollars to spend, why will three colas and four pretzels not be optimal?
A. This combination is affordable but does not maximize utility.
B. This combination has less total utility.
C. This combination has less marginal utility per dollar.
D. This combination is not affordable.
Answer: D
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The parity ratio:
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