The indifference curve below illustrates the trade-off between two goods, pizza and Pepsi. Which of the following statements are true for this particular consumer? Correct Answer(s) Slices of Pizza 5 4+2 3 2 1 0 1 2 +1 3 4 -4 5 6 7 Drag appropriate answer(s) here 8 9 Indifference curve 10 Cans of Pepsi The marginal rate of substitution on the indifference curve is constant. If this consumer starts with 5 slices of pizza and 1 can of Pepsi, he would willingly trade two slices of pizza for an additional Pepsi. Combinations on an indifference curve always have equal utility. The consumer will gain more utility from 2 Pepsis and 3 pizza slices than 7 Pepsis and 1 pizza slice because the former is a more balanced combination of goods. + + + + Yo
The indifference curve below illustrates the trade-off between two goods, pizza and Pepsi. Which of the following statements are true for this particular consumer? Correct Answer(s) Slices of Pizza 5 4+2 3 2 1 0 1 2 +1 3 4 -4 5 6 7 Drag appropriate answer(s) here 8 9 Indifference curve 10 Cans of Pepsi The marginal rate of substitution on the indifference curve is constant. If this consumer starts with 5 slices of pizza and 1 can of Pepsi, he would willingly trade two slices of pizza for an additional Pepsi. Combinations on an indifference curve always have equal utility. The consumer will gain more utility from 2 Pepsis and 3 pizza slices than 7 Pepsis and 1 pizza slice because the former is a more balanced combination of goods. + + + + Yo
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