Figure 21-10
-Refer to Figure 21-10. Which of the following statements is correct?
A)Bundle A provides the same utility as bundle E.
B)Bundle A provides the same utility as bundle C.
C)Bundle B contains more cake than bundle C.
D)The bundles along indifference curve Indifference Curve 2 are preferred to those along indifference curve Indifference Curve 3.

Question

Figure 21-10 
-Refer to Figure 21-10. Which of the following statements is correct?
A)Bundle A provides the same utility as bundle E. 
B)Bundle A provides the same utility as bundle C. 
C)Bundle B contains more cake than bundle C. 
D)The bundles along indifference curve Indifference Curve 2 are preferred to those along indifference curve Indifference Curve 3.

Quizplus · Accepted Answer

Bundle A and E are on different indifference curves, so they do not provide the same utility. Bundle A and C are on the same indifference curve, so they provide the same amount of utility. Bundle B and C contain the same amount of cake, so statement C is incorrect. Indifference curve 2 represents a higher level of utility than indifference curve 3, so the bundles along indifference curve 2 are preferred to those along indifference curve 3. Therefore, bundle B is preferred to bundle D, but bundle C is the best choice because it provides the highest amount of utility among all the bundles.

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