Asked by

Maria Rosita N. Saldajeno
on Nov 16, 2024

verifed

Verified

Liana consumes only beer and chips. Her indifference curves are all bowed inward. Consider the bundles (2,6) , (4,4) , and (6,2) . If Liana is indifferent between (2,6) and (6,2) , then Liana must

A) prefer (4,4) to (6,2) .
B) be indifferent between (4,4) and (6,2) .
C) prefer (6,2) to (4,4) .
D) prefer (2,6) to (4,4) .

Indifference Curves

Graphical representations in microeconomic theory depicting combinations of two goods between which a consumer is indifferent because they provide equal utility.

Bundles

Combinations of goods or services sold as a single package, often at a discounted rate compared to purchasing each item separately.

Indifferent

A state of having no preference between two or more alternatives, reflected in decision-making and consumer choice theory.

  • Acquire knowledge on the essential features of indifference curves and the way they illustrate consumer preferences.
  • Employ the concept of the marginal rate of substitution (MRS) to scrutinize and refine consumer preference and choice efficiency.
verifed

Verified Answer

MT
Md. Towfiq Sadat RahmanNov 21, 2024
Final Answer:
Get Full Answer