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)both of these combinations lie on the same indifference curve.
D)one of these combinations lies on a higher indifference curve.

Question

Quizplus · Accepted Answer

Since both combinations provide Paola with the same level of utility (50 units), they must lie on the same indifference curve. Therefore, Paola is indifferent between consuming 4 cupcakes and 2 glasses of milk or 3 cupcakes and 2 glasses of milk.

Paola Gets 50 Units of Utility When She Consumes 4