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 indifference curve I₂ should not cross the indifference curve I₁ as shown, since it violates the assumption of transitivity. The consumer would prefer the combination of hours of music and apples represented by point B since it provides a higher level of utility than A. The consumer is not indifferent between A and B, but rather prefers B. The consumer is also indifferent between D and E, as these combinations of music and apples provide the same level of utility. The consumer is indifferent between B and C, as both combinations yield the same level of utility.

The Below Indifference Map Shows the Various Combinations of Hours