Figure 21-10
-Refer to Figure 21-10. Which of the following statements is not correct?
A)Bundles on Indifference Curve 3 are preferred to bundles on Indifference Curve 1.
B)The consumer is indifferent between bundles A and E because they contain the same number of donuts.
C)The consumer is indifference between bundles B and C.
D)The consumer prefers bundle C to bundle D.

Question

Figure 21-10 
-Refer to Figure 21-10. Which of the following statements is not correct?
A)Bundles on Indifference Curve 3 are preferred to bundles on Indifference Curve 1. 
B)The consumer is indifferent between bundles A and E because they contain the same number of donuts. 
C)The consumer is indifference between bundles B and C. 
D)The consumer prefers bundle C to bundle D.

Quizplus · Accepted Answer

This statement is incorrect because the consumer is not necessarily indifferent between bundles A and E just because they contain the same number of donuts. The consumer's preferences depend on more than just the quantity of donuts, and there is not enough information provided in the graph to determine whether the consumer prefers one bundle over the other.

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