1. A consumer has $60 to spend on coffee and tea. Suppose that coffee and tea are perfect substitutes for him and his marginal rate of substitution (MRS) of tea for coffee is 2. If coffee and tea have the same price per unit, how will he do?
(A) He will spend all $60 on coffee.
(B) He will spend all $60 on tea.
(C) He will spend $40 on coffee and $20 on tea.
(D) He will spend $20 on coffee and $40 on tea.

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