Paola gets 50 units of utility when she consumes 4 cupcakes and 2 glasses of milk.She also gets 50 units of utility when she consumes 3 cupcakes and 2 glasses of milk.This means that:
A)Paola likes milk better than cupcakes.
B)Paola likes cupcakes better than milk.
C)these combinations lie on the same indifference curve.
D)one of these combinations lies on a higher indifference curve.

Question

Quizplus · Accepted Answer

Since Paola gets the same amount of utility from consuming both combinations, they must lie on the same indifference curve. Therefore, any combination on this indifference curve would provide Paola with the same level of satisfaction.

Paola Gets 50 Units of Utility When She Consumes 4