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) 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

The Answer of 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) 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.

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