Figure 21-10
-Refer to Figure 21-10. Which of the following statements is not true for a consumer who moves from bundle B to bundle C?
A)At bundle C the consumer would be willing to give up a larger amount of cake in exchange for a donut than at bundle B.
B)The marginal rate of substitution at bundles B and C are the same since the points lie on the same indifference curve.
C)The consumer is willing to sacrifice donuts to obtain cake.
D)The consumer receives the same level of satisfaction at bundles B and C.

Question

Figure 21-10 
-Refer to Figure 21-10. Which of the following statements is not true for a consumer who moves from bundle B to bundle C?
A)At bundle C the consumer would be willing to give up a larger amount of cake in exchange for a donut than at bundle B. 
B)The marginal rate of substitution at bundles B and C are the same since the points lie on the same indifference curve. 
C)The consumer is willing to sacrifice donuts to obtain cake. 
D)The consumer receives the same level of satisfaction at bundles B and C.

Quizplus · Accepted Answer

The statement B is false because the points do not lie on the same indifference curve. Bundle B is on a higher indifference curve than bundle C, indicating that the consumer receives a higher level of satisfaction at bundle B. Therefore, the marginal rate of substitution at bundle B is higher than at bundle C, meaning the consumer is willing to give up more cake for a donut at bundle C than at bundle B. Statements A, C, and D are all true.

Figure 21-10 -Refer to Figure 21-10. Which of the Following Statements Is