When Stephanie increases the consumption of pizza and decrease the consumption of soda, her marginal utility of
A) pizza falls and the marginal utility of soda will increase.
B) both pizza and soda will decrease.
C) pizza increases and the marginal utility of soda will fall.
D) both pizza and soda will increase.

Question

Quizplus · Accepted Answer

When Stephanie consumes more pizza, the marginal utility of pizza decreases due to the law of diminishing marginal utility. Conversely, as she consumes less soda, the marginal utility of soda increases.

When Stephanie Increases the Consumption of Pizza and Decrease the Consumption