What is the lowest price the firm would accept in the long run?

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

When investors expect a country's currency to weaken in the future, they buy more of the currency and cause it to appreciate immediately

a. True b. False Indicate whether the statement is true or false