If two consumption points are on different indifference curves,then one point is
A)a substitute for the other.
B)preferred to the other.
C)a complement of the other.
D)a normal good and the other point is an inferior good.
E)more expensive than the other.

Question

Quizplus · Accepted Answer

Indifference curves represent a set of consumption bundles that give the same level of utility. If two consumption points are on different indifference curves, it means that the consumer prefers one point to the other because it provides a higher level of utility. Therefore, the answer is B - preferred to the other.

If Two Consumption Points Are on Different Indifference Curves,then One