Laura consumes only beer and chips. Her indifference curves are all bowed inward. Consider the bundles (2,6), (4,4), and (6,2). If Laura is indifferent between (2,6) and (6,2), then Laura must
A)prefer (4,4) to (6,2).
B)be indifferent between (4,4) and (6,2).
C)prefer (6,2) to (4,4).
D)prefer (2,6) to (4,4).

Question

Quizplus · Accepted Answer

Since Laura's indifference curves are bowed inward, the bundle (4,4) lies on a higher indifference curve than (2,6) and (6,2), indicating she prefers (4,4) to either of the other two bundles.

Laura Consumes Only Beer and Chips