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Figure 21-4 -Refer to Figure 21-4.Which of the Following Statements Is True

Question 173

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Figure 21-4
Figure 21-4    -Refer to Figure 21-4.Which of the following statements is true? A) If a consumer moves from point C to point A, her loss of Ho-Ho's cannot be compensated for by an increase in Twinkies. B) Point E is preferred to all other points identified in the figure. C) Since more is preferred to less, point C may be preferred to point E in some circumstances for this consumer. D) Even though point E has more of both goods than point B, we could draw a different set of indifference curves in which point B is preferred to point E.
-Refer to Figure 21-4.Which of the following statements is true?


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

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