Multiple Choice
Pizza Pepsi
-The above table shows Priscilla's marginal utility from the two goods she consumes, pizza and Pepsi. The price of a slice of pizza is $2 and of a can of Pepsi is $1. Suppose Priscilla has $6 to spend. If Priscilla is consuming 1 slice of pizza and 2 cans of Pepsi, which of the following is CORRECT?
A) Priscilla is maximizing her utility.
B) Priscilla should increase her consumption of Pepsi to maximize her utility.
C) Priscilla should increase her consumption of pizza to maximize her utility.
D) None of the above answers is correct.
Correct Answer:
Verified
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