Bottles of Soda Slices of Pizza

-The table above gives Ali's total utility from consuming bottles of soda and slices of pizza.Suppose the price of a slice of pizza increases.As a result,Ali's
A) marginal utility per dollar from pizza decreases.
B) total utility increases.
C) purchases of pizza might increase.
D) marginal utility from all the slices of pizza he consumes decreases.
E) marginal utility per dollar from soda increases.

Question

Bottles of Soda	Slices of Pizza
 
-The table above gives Ali's total utility from consuming bottles of soda and slices of pizza.Suppose the price of a slice of pizza increases.As a result,Ali's
A) marginal utility per dollar from pizza decreases. 
B) total utility increases. 
C) purchases of pizza might increase. 
D) marginal utility from all the slices of pizza he consumes decreases. 
E) marginal utility per dollar from soda increases.

Quizplus · Accepted Answer

When the price of a slice of pizza increases, Ali will have to spend more money to purchase the same amount of pizza, which will decrease his marginal utility per dollar from pizza. This means that he will receive less satisfaction per dollar spent on pizza, making him less likely to continue purchasing as much pizza as before. The other answer choices are not necessarily true when the price of pizza increases, as the change in price does not necessarily affect Ali's total utility, purchases of pizza, or marginal utility from soda.