The above table shows Priscilla's marginal utility from the two goods she consumes, pizza and Pepsi. Initially, a slice of pizza costs $4 and a can of Pepsi $2. Suppose Priscilla has $12 to spend
If the price of pizza falls to $2, Priscilla will choose to A) consume more pizza.
B) consume more Pepsi.
C) consume less pizza.
D) Both answers A and B are correct.
D
Economics
You might also like to view...
Explain how the market supply curve is derived. Does the law of supply apply to the market supply curve?
What will be an ideal response?
Economics
If the dollar depreciated relative to the yen, it would be expected that
A. the Japanese trade surplus with the U.S. would be increased (or the trade deficit would be reduced). B. Japanese imports from the United States would decrease. C. Japanese exports to the United States would decrease. D. All of the choices are true.
Economics