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7. Joshua's preferences over cookies (C) and donuts (D) are represented by the utility function U(C, D) = C' + D', MUc = 20, MUD

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7. Joshua's preferences over cookies (C) and donuts (D) are represented by the utility function U(C, D) = C' + D', MUc = 20, MUD = 2D If the price of a cookies is $1 and the price of a donuts is $2, and Joshua can spend a combined total of $10 on these goods, find Joshua's optimal consumption bundle. (a) C =4, D=2 (b) C =5, D =0 (@) C=0, D = 10 (d) C =5, D = 10 (e) None of the above

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