Market basket B is to the northwest of basket A but lies on the same indifference curve for a consumer.Market basket C also lies to the northwest of A but is above the indifference curve.This consumer
A) prefers C to A.
B) is also indifferent between A and C.
C) prefers B to A.
D) prefers C to B.

Question

Quizplus · Accepted Answer

Market basket C is above the indifference curve that includes A and B, indicating that C provides a higher level of utility than A, so the consumer prefers C to A.

Market Basket B Is to the Northwest of Basket a but Lies