Bob's Marginal Utility for consuming beer and pizza with $8.00 in income

-Referring to the above table, suppose Bob's ratios of marginal utility of beer to the price of beer and the marginal utility of pizza to the price of pizza are equal. If the price of beer increases
A) Bob will probably consume more beer and less pizza.
B) Bob will probably consume less beer and less pizza.
C) Bob will probably consume less beer and more pizza.
D) Bob will still consume the same amount of beer and pizza.

Question

Bob's Marginal Utility for consuming beer and pizza with $8.00 in income
 
-Referring to the above table, suppose Bob's ratios of marginal utility of beer to the price of beer and the marginal utility of pizza to the price of pizza are equal. If the price of beer increases
A) Bob will probably consume more beer and less pizza. 
B) Bob will probably consume less beer and less pizza. 
C) Bob will probably consume less beer and more pizza. 
D) Bob will still consume the same amount of beer and pizza.

Quizplus · Accepted Answer

If Bob's ratios of marginal utility of beer to the price of beer and the marginal utility of pizza to the price of pizza are equal, it means that he is spending his money on beer and pizza in a way that maximizes his utility. If the price of beer increases, it means that beer is now relatively more expensive compared to pizza. As a result, Bob will consume less beer (because he will get less marginal utility per dollar spent on beer) and more pizza (because he will get more marginal utility per dollar spent on pizza). Therefore, the correct answer is C.

Bob's Marginal Utility for Consuming Beer and Pizza with $8