Question

If Melissa likes chocolate ice cream more than vanilla ice cream, then

chocolate ice cream provides a higher level of utility.

Melissa should get strawberry ice cream.

chocolate ice cream must be more expensive.

vanilla ice cream provides a higher level of utility.

Answer 1

A person consumes a good or service due to the utility, he or she receives from such consumption.

Higher the utility received from a good relative to other goods, higher would be the preference of consumer for such good relative to other goods.

So, if Melissa likes chocolate ice cream more than the vanilla ice cream then in such case she must be receiving higher utility from consumption of chocolate ice cream relative to the consumption of vanilla ice cream.

Hence, the correct answer is the option (1) [chocolate ice cream provides a higher level of utility].