Harry has $10 to spend on cans of Coke and Pepsi, which he regards as perfect substitutes, one for one.Pepsi costs $.50 a can and Coke costs $.60 a can.Harry has 20 coupons, each of which can be used to buy 1 can of Coke for $.40.Which of the following bundles will Harry buy?
A)20 cans of Pepsi and no Coke
B)16 2/3 cans of Coke and no Pepsi
C)10 cans of Coke and 8 cans of Pepsi
D)10 cans of Coke and 12 cans of Pepsi
E)None of the above.

Question

Quizplus · Accepted Answer

Harry will use his 20 coupons to buy Coke for $.40 a can, spending $8 (20 cans * $.40/can = $8). With the remaining $2 ($10 - $8), he can buy 4 cans of Pepsi at $.50 a can ($2 / $.50/can = 4 cans). None of the options provided match this outcome.

Harry Has $10 to Spend on Cans of Coke and Pepsi