The figure above shows three of a consumer's indifference curves.
-Which of the following are true?
i.Points C and G are equally preferred because they lie on the same indifference curve.
ii.Points C and J are equally preferred because on them the consumption of chewing gum is equal.
iii.Points G and J are equally preferred because on them the consumption of water is equal.
A) i only
B) ii only
C) iii only
D) ii and iii
E) i, ii, and iii

Question

The figure above shows three of a consumer's indifference curves.
-Which of the following are true?
i.Points C and G are equally preferred because they lie on the same indifference curve.
ii.Points C and J are equally preferred because on them the consumption of chewing gum is equal.
iii.Points G and J are equally preferred because on them the consumption of water is equal.
A) i only 
B) ii only 
C) iii only 
D) ii and iii 
E) i, ii, and iii

Quizplus · Accepted Answer

Indifference curves represent combinations of goods that provide the same level of utility to the consumer. Therefore, if points C and G lie on the same indifference curve, it means the consumer is indifferent between these two points, implying they are equally preferred. Points C and J having equal consumption of chewing gum and points G and J having equal consumption of water do not necessarily imply equal preference, as preference also depends on the combination of goods, not just the quantity of a single good.

The Figure Above Shows Three of a Consumer's Indifference Curves