Ms Sweettooth Always Consumes Iced Tea and Sugar in Fixed

question 246

Multiple Choice

Ms. Sweettooth always consumes iced tea and sugar in fixed proportions: 8 ounces of iced tea to 3 teaspoons of sugar. This implies that for Ms. Sweettooth:

• A) iced tea and sugar are perfect substitutes.
• B) the indifference curves for iced tea and sugar are parallel.
• C) 8 ounces of iced tea and 3 teaspoons of sugar yield exactly the same utility as 16 ounces of iced tea and 6 teaspoons of sugar.
• D) iced tea and sugar are perfect complements.

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