The below indifference map shows the various combinations of hours of music and apples that yield different levels of utility. Figure 6.1 According to Figure 6.1, which of the following is incorrect?

Question

The below indifference map shows the various combinations of hours of music and apples that yield different levels of utility. Figure 6.1  According to Figure 6.1, which of the following is incorrect?

Quizplus · Accepted Answer

The intersection of indifference curves I₂ and I₁ should be on the vertical axis (hours of music) rather than on the horizontal axis (apples). This means that the consumer is willing to give up one apple for an additional hour of music but is not willing to give up an additional hour of music for one apple. Therefore, the intersection point should lie on the vertical axis.

The Below Indifference Map Shows the Various Combinations of Hours