A set of indifference curves showing that the consumer is indifferent between market baskets A and B,and market baskets A and C,but that market basket C is preferred to B must be _____.
A)horizontal
B)positively sloped
C)parallel
D)intersecting

Question

Quizplus · Accepted Answer

The set of indifference curves must intersect in such a way that the curves for A and B lie on one side and the curve for C lies on the other side. This means that the consumer is indifferent between A and B, and A and C, but prefers C to B. This can only be represented by intersecting indifference curves.

A Set of Indifference Curves Showing That the Consumer Is