-Lizzie's preferences are shown in the figure above. Which of the following combinations of goods does Lizzie prefer the most?
A) 6 comic books and 20 cookies
B) 8 comic books and 8 cookies
C) 12 comic books and 10 cookies
D) 4 comic books and 12 cookies

Question

-Lizzie's preferences are shown in the figure above. Which of the following combinations of goods does Lizzie prefer the most?
A) 6 comic books and 20 cookies 
B) 8 comic books and 8 cookies 
C) 12 comic books and 10 cookies 
D) 4 comic books and 12 cookies

Quizplus · Accepted Answer

Lizzie prefers combinations of goods that are on higher indifference curves. Indifference curve U2 is higher than U1, so Lizzie prefers combinations of goods on U2. Of the given options, only (A) is on U2.

-Lizzie's Preferences Are Shown in the Figure Above