Figure 21-10
-Refer to Figure 21-10. Which of the following statements is correct?
A)If a consumer moves from bundle C to bundle A, her loss of cake cannot be compensated for by an increase in donuts.
B)Bundle E is preferred to all other points identified in the figure.
C)Because more is preferred to less, bundle C may be preferred to bundle E in some circumstances for this consumer.
D)Even though bundle E has more of both goods than bundle B, we could draw a different set of indifference curves in which bundle B is preferred to bundle E.

Question

Figure 21-10 
-Refer to Figure 21-10. Which of the following statements is correct?
A)If a consumer moves from bundle C to bundle A, her loss of cake cannot be compensated for by an increase in donuts. 
B)Bundle E is preferred to all other points identified in the figure. 
C)Because more is preferred to less, bundle C may be preferred to bundle E in some circumstances for this consumer. 
D)Even though bundle E has more of both goods than bundle B, we could draw a different set of indifference curves in which bundle B is preferred to bundle E.

Quizplus · Accepted Answer

The Answer of Figure 21-10 
-Refer to Figure 21-10. Which of the following statements is correct?
A)If a consumer moves from bundle C to bundle A, her loss of cake cannot be compensated for by an increase in donuts. 
B)Bundle E is preferred to all other points identified in the figure. 
C)Because more is preferred to less, bundle C may be preferred to bundle E in some circumstances for this consumer. 
D)Even though bundle E has more of both goods than bundle B, we could draw a different set of indifference curves in which bundle B is preferred to bundle E.

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