Suppose you have two indifference curves U₁ and U₂ representing the consumption of two normal goods.If U₂ is twice as far from the origin as U₁,then _____. A)consuming a bundle on U₁ is preferred two times more than consuming a bundle on U₂ B)consuming a bundle on U₁ has a higher utility than consuming a bundle on U₂ C)consuming a bundle on U₂ is preferred two times less than consuming a bundle on U₁ D)consuming a bundle on U₂ has a higher utility than consuming a bundle on U₁

Question

Quizplus · Accepted Answer

Indifference curves farther from the origin represent higher levels of utility. Therefore, if U₂ is twice as far from the origin as U₁, it implies that consuming a bundle on U₂ has a higher utility than consuming a bundle on U₁.

Suppose You Have Two Indifference Curves U1 and U2 Representing

Suppose You Have Two Indifference Curves U₁ and U₂ Representing