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Suppose Lizzie consumes soda and pizza. If the last bottle of soda she drinks provides 100 units of utility per dollar while the last slice of pizza she eats provides 300 units of utility per dollar:_____.
a. the demand curve for soda must have shifted outward.
b. the demand curve for pizza must have shifted inward.
c. Lizzie should buy more pizza and less soda to maximize her utility.
d. the indifference curve for soda and pizza must have rotated inward.
e. the marginal rate of substitution between soda and pizza equals 3.

Sagot :

ogorwyne

The answer is option c. Lizzie has to buy more pizza and less soda so that she can maximize her utility.

The reason why this is the answer is because, the utility that she gets from the consumption of pizza is greater than the utility that she derives from consuming soda.

From the question, when she eats pizza she gets 300 units of utility compared to when she drinks her last soda that only gives her 100 units of utility.

In conclusion, She should buy more of what gives her maximum utility. That is Pizza.

read more https://brainly.com/question/14098149?referrer=searchResults

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