Steven's indifference curves are circles, all of which are centered at (15, 13).Of any two indifference circles, he would rather be on the inner one than the outer one.
A)Steven prefers (19, 22)to (13, 7).
B)Steven prefers (13, 22)to (13, 7).
C)Steven prefers (12, 10)to (22, 18).
D)Steven's preferences are not complete.
E)More than one of the above statements are true.

Question

Quizplus · Accepted Answer

Steven's indifference curves are circles centered at (15, 13), and he prefers points closer to the center. The point (12, 10) is closer to (15, 13) than (22, 18), so he prefers (12, 10) to (22, 18).

Steven's Indifference Curves Are Circles, All of Which Are Centered