Indifference Curve Analysis

3. The Field of Indifference Curves

3.1. Try It

Menna's consumption of movies and video games is measured on a graph with movies on the horizontal axis and video games on the vertical axis. The units are in hours and her budget constraint is defined by the number of hours she has budgeted for entertainment during her school vacation. Consider the four points below showing different ways she may choose to allocate her time.

Which point does not belong on the same indifference curve as point A?

 

Movies

Games

A

2 hours

10 hours

B

3 hours

11 hours

C

4 hours

4 hours

D

2 hours

8 hours


    • B
    • C
    • D

Below are a set of nested indifference curves reflecting consumer preferences between good A and good B. The red curve represents a greater level of utility for consumers than that attained at any point on the blue curve. Which of the graphs is not plausible for a field of indifference curves?

    • Option A
    • Image option B
    • Image option C