-The indifference curve in the above figure
A) could illustrate a person's preferences for identical computer disks made by two different companies.
B) could illustrate a person's preferences for right-handed and left-handed gloves.
C) has a marginal rate of substitution that at first decreases and then increases.
D) None of the above statements is correct.

Question

-The indifference curve in the above figure
A) could illustrate a person's preferences for identical computer disks made by two different companies. 
B) could illustrate a person's preferences for right-handed and left-handed gloves. 
C) has a marginal rate of substitution that at first decreases and then increases. 
D) None of the above statements is correct.

Quizplus · Accepted Answer

Indifference curves illustrate preferences for substitutable goods, like identical computer disks from different companies, where the consumer is indifferent between combinations.

-The Indifference Curve in the Above Figure