Can 2 budgies fit in a 7/16" pagoida style cage?

Answers:
sure they will fit in there but then again they could also fit in a bean can if you squeezed them into it, this space is not enough although they would fit

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yes thats plenty enough room

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they'll fit but can they move normally?
The single biggest mistake you can make is too small a cage for birds. caution on the side of overly large rather than to small.
Think of it this way, could you use a closet for your bedroom? Yes, you would fit but would it be healthy and happy?

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This is too small for budgies .The cage for their sakes should be at least 24x24 or larger.Budgies are members of the parrot families and they will talk if kept separated and time is spent training. Do not use mirrors or attempt tapes for this purpose . Because their voices are so soft it has to be pretty quiet to her them often .
Do provide them with good food in addition to seed and vitamin and make a bath available. Never us ammonia or cleaning solutions around them because birds are very sensitive to all such gases emitted by these products and they can and will kill them.

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NO - budgies need room to extend their wings without smacking in to the walls, perches, toys, food dishes and other birds - Like another person said - - better to be too BIG than to be too SMALL in this case!! Although square cages are not as pretty, they are the most practical.

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The 7/16" only tells us the space between the bars. You do not mention the dimensions of that cage itself. Is it a square or round type padoga cage. I am guessing that by saying "pagoda" you mean a tall, round cage; but there are also roof types that people might refer to as pagoda.
In any case, I would not personally ever have another ROUND cage of any type for various reasons. I think that they are difficult to take care of because you have to take out the bottom tray and trace around it on paper to get new cage papers. With a square one you can usually just fold your newspapers to fit.
Also, birds like to have a corner area of their environment where they can go and perch for the night or a nap and feel totally safe and protected. A round cage does not provide any corner for them to go to.
Another thing, if the pagoda style you mention is a round metal top (no bars, just a roof of metal), there will not be many places to hang toys from - usually just the middle part where you can hang a swing from - and that they won't usually use because its inconvenient to get up to.
And lastly, if it is a tall, round cage, there are not enough horizonal bars for budgies to use their climbing abilities. They do like to climb and normally, even though the bar spacing is fine for them, there may only be a horizontal bar every 8-10 inches or so and it doesn't give them the chance to climb like they enjoy doing. The only thing I think these tall, round cages are good for is silk floral arrangements!
I do not feel it is fair to put a budgie (even one by itself) in anything smaller than a 19" square and at least 19-24" tall cage. As some of the other people have mentioned, you might think of how you might feel locked up in your clothes closet or a small bathroom and only allowed out when your cage keeper felt they had time to spend with you.
My BIG BEEF with these cage companies and PET STORES is that they even bother to sell the small cages that are 9" x 12" and only about 12-15" tall. It is an outrage that anyone would keep a bird (even a finch a canary) in a cage this size. They are good for nothing other than transporting a bird from home to doctor or bird sitter and should NOT be sold as a basic environment!
In this case, BIGGER is always BETTER!