A consumer has preferences over two goods: books and movies.Three bundles,which all lie on the same indifference curve for this consumer,are shown in the table below.
Assuming that these goods are neither perfect substitutes nor perfect complements for this consumer,which of the following properties of indifference curves would this consumer's preferences violate?
A)Indifference curves are downward sloping.
B)Indifference curves do not cross.
C)Indifference curves are bowed inward.
D)These bundles do not violate any of the properties of indifference curves.

Question

A consumer has preferences over two goods: books and movies.Three bundles,which all lie on the same indifference curve for this consumer,are shown in the table below. 
Assuming that these goods are neither perfect substitutes nor perfect complements for this consumer,which of the following properties of indifference curves would this consumer's preferences violate?
A)Indifference curves are downward sloping. 
B)Indifference curves do not cross. 
C)Indifference curves are bowed inward. 
D)These bundles do not violate any of the properties of indifference curves.

Quizplus · Accepted Answer

The fact that these three bundles are on the same indifference curve despite differing quantities of books and movies suggests that the consumer's preferences are not linear and that there is some degree of complementarity or substitutability between the goods. This violates the assumption that indifference curves are linear or straight, so the correct answer is C: indifference curves are bowed inward.

A Consumer Has Preferences Over Two Goods: Books and Movies