Use the following to answer question:
-(Table: Madeline's Preferences for T-Shirts and Coffee)Use Table Madeline's Preferences for T-Shirts and Coffee.Assume each consumption bundle provides the same level of utility.Suppose Madeline is consuming bundle A but then changes her consumption and slowly moves along her indifference curve to bundles B,C,D,and finally E.As she moves toward bundle E,she gives up:
A)the same number of T-shirts to obtain another cup of coffee.
B)an increasing numbers of T-shirts to obtain another cup of coffee.
C)a decreasing numbers of T-shirts to obtain another cup of coffee.
D)no T-shirts to obtain another cup of coffee.

Question

Use the following to answer question: 
-(Table: Madeline's Preferences for T-Shirts and Coffee)Use Table Madeline's Preferences for T-Shirts and Coffee.Assume each consumption bundle provides the same level of utility.Suppose Madeline is consuming bundle A but then changes her consumption and slowly moves along her indifference curve to bundles B,C,D,and finally E.As she moves toward bundle E,she gives up:
A)the same number of T-shirts to obtain another cup of coffee. 
B)an increasing numbers of T-shirts to obtain another cup of coffee. 
C)a decreasing numbers of T-shirts to obtain another cup of coffee. 
D)no T-shirts to obtain another cup of coffee.

Quizplus · Accepted Answer

According to the table, as Madeline moves from bundle A to bundle E, she is giving up fewer and fewer T-shirts to obtain another cup of coffee. This is consistent with a downward-sloping indifference curve, where the marginal utility of coffee is decreasing as Madeline consumes more of it, while the marginal utility of T-shirts is increasing as she has fewer of them. Therefore, the correct answer is (C) - Madeline gives up a decreasing number of T-shirts to obtain another cup of coffee.

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