All combinations of Pepsi and coffee that yield Geraldo the same satisfaction lie along a particular
A)demand curve
B)marginal utility curve
C)budget line
D)income-consumption curve
E)indifference curve

Question

Quizplus · Accepted Answer

The combinations that yield the same satisfaction for Geraldo lie along an indifference curve, which represents all the combinations of Pepsi and coffee that give him the same level of utility. Therefore, the best choice(s) for Geraldo would be the point(s) on the highest indifference curve that touches his budget line, as this represents the combination that maximizes his utility within his budget constraint.

All Combinations of Pepsi and Coffee That Yield Geraldo the Same