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Question 145

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Use the following to answer questions :
Scenario: Music Downloads and Streamed Movies
Phillip has an income of $300 per month,which he uses to purchase music downloads (MD) and streamed movies (SM) .Each music download costs $1 and each streamed movie costs $5.
-Paola gets 50 units of utility when she consumes four cupcakes and two glasses of milk.She also gets 50 units of utility when she consumes three cupcakes and two 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.

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