You are consuming hot dogs and Cokes and believe you are maximizing utility for ...
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You are consuming hot dogs and Cokes and believe you are maximizing utility for your entire budget of $12. The price of a hot dog is $2 and the price of a Coke is $2. Suppose the price of hot dogs rises to $4 and the price of a Coke remains at $2. You adjust your consumption of hot dogs and Cokes and believe you are once again receiving maximum total utility from the meal. Which one of the following can you conclude?
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