Comparing a market basket A to other market baskets,we can say that for a typical consumer,A is preferred to baskets to the
A) southwest but less preferred to baskets to the northeast.
B) northeast but less preferred to baskets to the southwest.
C) northwest but less preferred to baskets to the southeast.
D) southeast but less preferred to baskets to the northwest .

Question

Quizplus · Accepted Answer

In the context of a typical consumer preference map, a market basket A is preferred to those baskets to the southwest because moving northeast (up and to the right on a graph) typically represents an increase in the quantity of goods or services, which is generally preferred by consumers. Baskets to the northeast of A would offer more of at least one good without reducing the quantity of any other, making them more preferred to A.

Comparing a Market Basket a to Other Market Baskets,we Can