When someone is served pizza and soda for dinner, that individual would typically eat some pizza, then drink some soda, then eat more pizza, and so on, until consumption of both pizza and soda ceases. How can this behavior be explained using economic concepts?
A)The individual is revealing an indecisiveness about whether more utility is received from pizza or from soda.
B)People tend to act irrationally around food, and the concept of utility maximization cannot be applied.
C)The individual continues to eat each good until the marginal utility for the one good is lower than the other.
D)The concept of unlimited wants states that an individual will never tire of eating pizza and soda.

Question

Quizplus · Accepted Answer

The behavior can be explained by the concept of diminishing marginal utility, where the individual alternates between pizza and soda to balance the marginal utility received from each, continuing until the marginal utility of consuming more of either does not exceed that of the other.

When Someone Is Served Pizza and Soda for Dinner, That