Bianca consumes pizza.Marginal utility theory predicts that when the price of pizza increases,
A)Bianca's total utility from pizza will increase.
B)Bianca's marginal utility from pizza will not change.
C)Bianca's demand curve for pizza will shift leftward.
D)Bianca will buy less pizza.
E)C and D are correct.

Question

Quizplus · Accepted Answer

According to the law of demand, as the price of a good increases, the quantity demanded of that good decreases. In the case of Bianca and her consumption of pizza, it is likely that if the price of pizza increases, she will buy less pizza, as the marginal utility she derives from each additional slice will not be worth the higher price. Therefore, choice D is the best answer.

Bianca Consumes Pizza