The below indifference map shows the various combinations of hours of music and apples that yield different levels of utility.Figure 7.1 -According to Figure 7.1, which of the following is incorrect? A)The consumer prefers B to A B)The consumer is not indifferent between A and B C)The consumer is indifferent between D and E D)Indifference curve I₂ should cross indifference curve I₁ as shown E)The consumer is indifferent between B and C

Question

Quizplus · Accepted Answer

According to Figure 7.1, indifference curve I₂ should not cross indifference curve I₁ as shown. These two indifference curves should be parallel because they represent the same level of utility. Therefore, D is the incorrect statement. The consumer prefers B to A, and the consumer is indifferent between B and C. The consumer is also indifferent between D and E.

The Below Indifference Map Shows the Various Combinations of Hours