Pizza Pepsi
-The above table shows Priscilla's marginal utility from the two goods she consumes, pizza and Pepsi. A slice of pizza costs $4 and a can of Pepsi $2. Suppose Priscilla has $12 to spend. Which of the following leads Priscilla to switch her choices of pizza and Pepsi?
A) an increase in the price of pizza to $6 per slice
B) a decrease in the price of Pepsi to $1 per can
C) an increase in Priscilla's income
D) All of the above will cause Priscilla to change her choices.
Correct Answer:
Verified
Q254: Marginal utility theory predicts that if a
Q255: Renee consumes pizza and rice. An increase
Q256: Pizza Pepsi Q257: Marginal utility theory predicts that an increase Q258: Marginal utility theory predicts that when income Q260: Steve is in a consumer equilibrium. Then, Q261: Marginal utility theory predicts that a rise Q262: The paradox of value between diamonds and Q263: Sam consumes only sandwiches and soda and Q264: Sue consumes only sub sandwiches and Mountain
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents