Solved

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

Question 347

Multiple Choice

Pizza Pepsi
Pizza Pepsi    -The above table shows Priscilla's marginal utility from the two goods she consumes, pizza and Pepsi. A slice of pizza costs $4 and a can of Pepsi $2. Suppose Priscilla has $12 to spend. Which of the following leads Priscilla to switch her choices of pizza and Pepsi? A)  an increase in the price of pizza to $6 per slice B)  a decrease in the price of Pepsi to $1 per can C)  an increase in Priscilla's income D)  All of the above will cause Priscilla to change her choices.
-The above table shows Priscilla's marginal utility from the two goods she consumes, pizza and Pepsi. A slice of pizza costs $4 and a can of Pepsi $2. Suppose Priscilla has $12 to spend. Which of the following leads Priscilla to switch her choices of pizza and Pepsi?


A) an increase in the price of pizza to $6 per slice
B) a decrease in the price of Pepsi to $1 per can
C) an increase in Priscilla's income
D) All of the above will cause Priscilla to change her choices.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions