When someone is served pizza and soda for dinner,it is typical behavior to eat some pizza,then drink some soda,then eat more pizza,and so on,until the person stops consuming both.How can this behavior be explained using economic concepts?
A)The individual is revealing that they can't decide whether they gain more utility from pizza or from soda.
B)People tend to act irrationally around food,and the concept of utility maximization cannot be applied.
C)The person eats pizza until his marginal utility for pizza is lower than it is for soda,then he switches to soda.
D)The concept of unlimited wants says he will never tire of eating pizza and soda.

Question

Quizplus · Accepted Answer

The behavior can be explained using the concept of marginal utility, which states that individuals consume goods up to the point where the marginal utility gained from the last unit of consumption is equal to the price of the good. In this case, the individual eats pizza until the marginal utility gained from the last slice of pizza is lower than it is for soda, and then switches to drinking soda. This ensures that they are maximizing their utility by consuming both goods up to the point where the marginal utility is equal to the price.

When Someone Is Served Pizza and Soda for Dinner,it Is