Pizza Pepsi

-The above table shows Priscilla's marginal utility from the two goods she consumes, pizza and Pepsi. Initially, a slice of pizza costs $4 and a can of Pepsi $2. Suppose Priscilla has $12 to spend. If the price of pizza falls to $2, Priscilla will choose to
A) consume more pizza.
B) consume more Pepsi.
C) consume less pizza.
D) Both answers A and B are correct.

Question

Pizza Pepsi
 
-The above table shows Priscilla's marginal utility from the two goods she consumes, pizza and Pepsi. Initially, a slice of pizza costs $4 and a can of Pepsi $2. Suppose Priscilla has $12 to spend. If the price of pizza falls to $2, Priscilla will choose to
A) consume more pizza. 
B) consume more Pepsi. 
C) consume less pizza. 
D) Both answers A and B are correct.

Quizplus · Accepted Answer

When the price of pizza falls, Priscilla can buy more pizza for the same amount of money, increasing her consumption of pizza. Additionally, with the savings from the reduced price of pizza, she may also choose to buy more Pepsi, thus both A and B are correct.

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