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.

Question

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.

Quizplus · Accepted Answer

An increase in the price of pizza, a decrease in the price of Pepsi, or an increase in income will all affect Priscilla's budget constraint and marginal utility per dollar, leading her to adjust her consumption choices.

Pizza Pepsi -The Above Table Shows Priscilla's Marginal Utility from the Two