Figure 21-7
-Refer to Figure 21-7.Which of the following statements is not correct?
A) Bundles on Indifference Curve 3 are preferred to bundles on Indifference Curve 1.
B) The consumer is indifferent between bundles A and E because they contain the same number of donuts.
C) The consumer is indifference between bundles B and C.
D) The consumer prefers bundle C to bundle D.

Question

Figure 21-7 
-Refer to Figure 21-7.Which of the following statements is not correct?
A) Bundles on Indifference Curve 3 are preferred to bundles on Indifference Curve 1. 
B) The consumer is indifferent between bundles A and E because they contain the same number of donuts. 
C) The consumer is indifference between bundles B and C. 
D) The consumer prefers bundle C to bundle D.

Quizplus · Accepted Answer

The statement "The consumer is indifferent between bundles A and E because they contain the same number of donuts" is incorrect. The consumer may not be indifferent between A and E because they have different combinations of coffee and donuts, and the consumer may value these differently.

Figure 21-7 -Refer to Figure 21-7.Which of the Following Statements Is Not