Refer to the information provided in Figure 6.14 below to answer the questions that follow. Figure 6.14
-Refer to Figure 6.14. Assume Ellen has two products available, pizza and hamburgers. Ellen must be compensated with more pizzas as she gives up more burgers. The curve in Panel ________ represents her indifference curve.
A) A
B) B
C) C
D) D

Question

Refer to the information provided in Figure 6.14 below to answer the questions that follow.   Figure 6.14
-Refer to Figure 6.14. Assume Ellen has two products available, pizza and hamburgers. Ellen must be compensated with more pizzas as she gives up more burgers. The curve in Panel ________ represents her indifference curve.
A) A 
B) B 
C) C 
D) D

Quizplus · Accepted Answer

The indifference curve represents the combinations of goods that give a consumer the same level of satisfaction. In this case, Ellen is indifferent between the combinations of pizzas and hamburgers that lie on the curve in Panel B. This is because she is willing to give up one hamburger for one pizza, and vice versa.

Refer to the Information Provided in Figure 6