-Refer to Figure b.Suppose consumers choose to consume food in two different states,sunny weather,F_S and during a hurricane,F_H.As the consumer moves from point A to B along the indifference curve,the variability of consumption

Question

-Refer to Figure b.Suppose consumers choose to consume food in two different states,sunny weather,F<sub>S</sub> and during a hurricane,F<sub>H</sub>.As the consumer moves from point A to B along the indifference curve,the variability of consumption A) Decreases B) Increases C) Remains constant D) Increases for one good, but decreases for the other

Quizplus · Accepted Answer

As the consumer moves from point A to B along the indifference curve, they are consuming more in one state and less in the other, which increases the variability of consumption between the two states.

-Refer to Figure B