Figure 3.4.2 -Refer to Figure 3.4.2 Above. from an Initial Position at Position

Multiple Choice

Figure 3.4.2
-Refer to Figure 3.4.2 above. From an initial position at point A, the positions the consumer chooses as her budget line changes let us conclude that:

A) A is preferred to E and G.
B) B is preferred to A.
C) A is preferred to all market baskets in the top shaded area and all market baskets in the bottom shaded area are preferred to A.
D) A is preferred to all market baskets in the bottom shaded area and all market baskets in the top shaded area are preferred to A.