Figure 21-10
-Refer to Figure 21-10. When comparing bundle A to bundle E, the consumer
A)prefers bundle A because it contains more donuts.
B)prefers bundle E because it lies on a higher indifference curve.
C)prefers bundle E because it contains more donuts.
D)is indifferent between the two bundles.

Question

Figure 21-10 
-Refer to Figure 21-10. When comparing bundle A to bundle E, the consumer
A)prefers bundle A because it contains more donuts. 
B)prefers bundle E because it lies on a higher indifference curve. 
C)prefers bundle E because it contains more donuts. 
D)is indifferent between the two bundles.

Quizplus · Accepted Answer

Bundle E lies on a higher indifference curve than bundle A, indicating that the consumer would prefer it over bundle A. The number of donuts in each bundle is not the only factor affecting the consumer's preference.

Figure 21-10 -Refer to Figure 21-10. When Comparing Bundle a to Bundle