John consumes pizza and pasta,both normal goods.He is maximizing his utility in consumption of both goods.The price of pasta rises.Assuming that diminishing marginal utility applies to both goods,as John adjusts to this event,the marginal utility of pizza will _____,and the marginal utility of pasta will _____.
A)rise;rise
B)fall;fall
C)fall;rise
D)rise;fall

Question

Quizplus · Accepted Answer

Since pasta is now more expensive, John will likely decrease his consumption of pasta, leading to a decrease in the marginal utility of pasta. As he decreases pasta consumption, he will likely increase pizza consumption, leading to a decrease in the marginal utility of pizza (due to diminishing marginal utility). Therefore, the marginal utility of pasta will rise while the marginal utility of pizza will fall.

John Consumes Pizza and Pasta,both Normal Goods