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Refer to Figures D and E

Question 3

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Refer to Figures d and e.Water is crucial for survival,but it is particularly valuable during a drought when water is scarce.The probability of a drought is (1 - P) ,WD represents the quantity of water in a drought,while WR represents the quantity of water in a rainy season.Which set of indifference curves above best represent a relatively high probability of a drought? Refer to Figures d and e.Water is crucial for survival,but it is particularly valuable during a drought when water is scarce.The probability of a drought is (1 - P) ,W<sub>D</sub> represents the quantity of water in a drought,while W<sub>R</sub> represents the quantity of water in a rainy season.Which set of indifference curves above best represent a relatively high probability of a drought?   A)  Figure d B)  Figure e C)  Probabilities do not influence indifference curves. D)  Both Figures represent a relatively low probability of a drought.


A) Figure d
B) Figure e
C) Probabilities do not influence indifference curves.
D) Both Figures represent a relatively low probability of a drought.

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