according to her personal preferences, from two books and 120 doughnuts (point A), from three books and 84

doughnuts (point B) from 11 books and 40 doughnuts (point C) or from 12 books and 35 doughnuts (point D).

She would also receive the same utility from any of the unlabeled intermediate points along this indifference

curve.

Indifference curves have a roughly similar shape in two ways: 1) they are downward sloping from left to right;

2) they are convex with respect to the origin. In other words, they are steeper on the left and flatter on the right.

The downward slope of the indifference curve means that Lilly must trade off less of one good to get more of

the other, while holding utility constant. For example, points A and B sit on the same indifference curve Um,

which means that they provide Lilly with the same level of utility. Thus, the marginal utility that Lilly would
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