When Sally 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

According to the law of diminishing marginal utility, as Sally consumes more pizza, the additional satisfaction (marginal utility) she gets from each additional slice decreases. Conversely, as she consumes less soda, the marginal utility of soda increases because she starts to miss the satisfaction that soda provided.

When Sally Increases the Consumption of Pizza and Decrease the Consumption