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, 3, and 5 are such that
A)all three imply the same level of utility.
B)1 and 5 imply a higher level of utility than does 3.
C)3 implies a higher level of utility than does 1 or 5.
D)the person is indifferent among the three combinations.

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, 3, and 5 are such that
A)all three imply the same level of utility. 
B)1 and 5 imply a higher level of utility than does 3. 
C)3 implies a higher level of utility than does 1 or 5. 
D)the person is indifferent among the three combinations.

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, 3, and 5 are such that
A)all three imply the same level of utility. 
B)1 and 5 imply a higher level of utility than does 3. 
C)3 implies a higher level of utility than does 1 or 5. 
D)the person is indifferent among the three combinations.

Refer to the Diagram, in Which the Downsloping Lines Are