Figure 21-4

-Refer to Figure 21-4.Which of the following statements is correct?
A)Point A is preferred equally to point E.
B)Point A is preferred equally to point C.
C)The bundle associated with point B contains more Ho-Ho's than that associated with point C.
D)The bundles along indifference curve I₁ are preferred to those along indifference curve I₂.

Question

Figure 21-4
 
-Refer to Figure 21-4.Which of the following statements is correct?
A)Point A is preferred equally to point E. 
B)Point A is preferred equally to point C. 
C)The bundle associated with point B contains more Ho-Ho's than that associated with point C. 
D)The bundles along indifference curve I₁ are preferred to those along indifference curve I₂.

Quizplus · Accepted Answer

Point A and point C are on the same indifference curve, indicating that they are equally preferred. The bundle associated with point B contains fewer Ho-Ho's than that associated with point C, so statement C is incorrect. It cannot be determined from the diagram whether the bundles along indifference curve I₁ are preferred to those along indifference curve I₂, so statement D is incorrect. Therefore, the correct statement is B: Point A is preferred equally to point C.

Figure 21-4 -Refer to Figure 21-4.Which of the Following Statements Is Correct