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

Multiple Choice

Figure 21-10
-Refer to Figure 21-10. Which of the following statements is correct?

A) If a consumer moves from bundle C to bundle A, her loss of cake cannot be compensated for by an increase in donuts.
B) Bundle E is preferred to all other points identified in the figure.
C) Because more is preferred to less, bundle C may be preferred to bundle E in some circumstances for this consumer.
D) Even though bundle E has more of both goods than bundle B, we could draw a different set of indifference curves in which bundle B is preferred to bundle E.