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. If the price of pizza decreases, Priscilla's preferences (her marginal utility schedule) for pizza
A) will increase.
B) will decrease.
C) will not change.
D) may increase or decrease depending on what happens to the price of Pepsi.

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. If the price of pizza decreases, Priscilla's preferences (her marginal utility schedule) for pizza
A) will increase. 
B) will decrease. 
C) will not change. 
D) may increase or decrease depending on what happens to the price of Pepsi.

Quizplus · Accepted Answer

A change in the price of pizza does not affect Priscilla's preferences or her marginal utility schedule for pizza. Her preferences are determined by her tastes and satisfaction derived from consumption, not by the price.

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