Mary consumes two goods, X and Y. Her indifference curves have the usual shape. Consider the baskets (1, 3), (2, 2) and (3, 1). Mary is indifferent between (1, 3) and (3, 1). Which of the following statements is true? A. Mary is indifferent between the baskets (1, 3), (2, 2) and (3, 1) B. Mary prefers the baskets (1, 3),and (3, 1) to the basket (2, 2) C. Mary prefers the basket (2,2) to the baskets (1, 3),and (3, 1) D. We cannot say anything about which of the 3 baskets Mary prefers without knowing the equation of her utility function. E. Mary considers X and Y to be perfect complements
Mary consumes two goods, X and Y. Her indifference curves have the usual shape. Consider the baskets (1, 3), (2, 2) and (3, 1). Mary is indifferent between (1, 3) and (3, 1). Which of the following statements is true? A. Mary is indifferent between the baskets (1, 3), (2, 2) and (3, 1) B. Mary prefers the baskets (1, 3),and (3, 1) to the basket (2, 2) C. Mary prefers the basket (2,2) to the baskets (1, 3),and (3, 1) D. We cannot say anything about which of the 3 baskets Mary prefers without knowing the equation of her utility function. E. Mary considers X and Y to be perfect complements
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.7P
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Question
Mary consumes two goods, X and Y. Her indifference
A.
Mary is indifferent between the baskets (1, 3), (2, 2) and (3, 1)
B.
Mary prefers the baskets (1, 3),and (3, 1) to the basket (2, 2)
C.
Mary prefers the basket (2,2) to the baskets (1, 3),and (3, 1)
D.
We cannot say anything about which of the 3 baskets Mary prefers without knowing the equation of her utility function.
E.
Mary considers X and Y to be perfect complements
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