Using community indifference curves to reflect tastes of the community
A)is a simple extension of indifference curve analysis because people are so different.
B)cannot usually be done because the community may have inconsistent tastes even though its residents do not.
C)is a simple extension of indifference curve analysis if people are all alike.
D)Both B and C.

Question

Quizplus · Accepted Answer

Using community indifference curves to reflect tastes of the community is a simple extension of indifference curve analysis if people are all alike, but this assumption of homogeneity may not hold in reality leading to inconsistent tastes within the community. Therefore, it cannot usually be done because the community may have inconsistent tastes even though its residents do not.

Using Community Indifference Curves to Reflect Tastes of the Community