Jonny consumes slices of pizza and tacos. Recently, the price of corn increased because of a shortage of this product, while the price of wheat remained the same. Because of this, the price of tacos increased and the price of the slices of pizza remained the same. If Jonny’s income remains constant, is it possible that his consumption of pizza changes?

yes his consumption could change

Explanation:

His consumption of pizza could change since he might need to consume less pizza to afford more tacos. We could use the marginal rate of substitution to explain this where we describe how much goods one is willing to give up for the other while retaining maximum utility/satisfaction. So Jonny may be asked here what combination of tacos and pizza would give him same satisfaction while keeping good budget and retaining satisfaction.

Yes his consumption could change

Explanation:

He might need to consume less pizza and substitute it for more tacos so as to work around the budget he normally spends on the two. These can make his consumption to change.

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