Refer to the diagram, in which the downsloping lines are budget lines and I₁, I₂, and I₃ comprise an indifference map. The combinations of products M and N indicated by points 1, 2, and 5 are such that
A)point 2 yields more utility than either 1 or 5.
B)points 1 and 5 yield more utility than point 2.
C)points 1, 2, and 5 yield equal amounts of utility.
D)the levels of utility associated with these three points cannot be compared.

Question

Refer to the diagram, in which the downsloping lines are budget lines and I₁, I₂, and I₃ comprise an indifference map. The combinations of products M and N indicated by points 1, 2, and 5 are such that
A)point 2 yields more utility than either 1 or 5. 
B)points 1 and 5 yield more utility than point 2. 
C)points 1, 2, and 5 yield equal amounts of utility. 
D)the levels of utility associated with these three points cannot be compared.

Quizplus · Accepted Answer

The Answer of  Refer to the diagram, in which the downsloping lines are budget lines and I₁, I₂, and I₃ comprise an indifference map. The combinations of products M and N indicated by points 1, 2, and 5 are such that
A)point 2 yields more utility than either 1 or 5. 
B)points 1 and 5 yield more utility than point 2. 
C)points 1, 2, and 5 yield equal amounts of utility. 
D)the levels of utility associated with these three points cannot be compared.

Refer to the Diagram, in Which the Downsloping Lines Are