The following graph shows three possible indifference curves (I) for a consumer. DONUTS D E B CAKE 1. Refer to Figure 21-7. When comparing bundle B to bundle C, the consumer O a. prefers bundle B because it contains more donuts. O b. is indifferent between the two bundles. Oc. prefers bundle C because it contains more cake. Od. In order to compare bundle B to bundle C, we must know the prices of cake and donuts.

Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Theory Of Consumer Choice
Section: Chapter Questions
Problem 2CQQ
Question
The following graph shows three possible indifference curves (I) for a consumer.
DONUTS
D
E
B
CAKE
1.
Refer to Figure 21-7. When comparing bundle B to bundle C, the consumer
O a. prefers bundle B because it contains more donuts.
O b. is indifferent between the two bundles.
Oc. prefers bundle C because it contains more cake.
Od. In order to compare bundle B to bundle C, we must know the prices of cake and donuts.
Transcribed Image Text:The following graph shows three possible indifference curves (I) for a consumer. DONUTS D E B CAKE 1. Refer to Figure 21-7. When comparing bundle B to bundle C, the consumer O a. prefers bundle B because it contains more donuts. O b. is indifferent between the two bundles. Oc. prefers bundle C because it contains more cake. Od. In order to compare bundle B to bundle C, we must know the prices of cake and donuts.
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