Indifference Curve Analysis
3. The Field of Indifference Curves
3.2. Check Answers
Correct! If point A is on the indifference curve then B cannot lie on the same curve. At point B Menna consumes more of both movies and video games than point A so it must lie on a higher indifference curve.
Incorrect. Point C would lie at the point along the indifference curve where the marginal rate of substitution is close to one.
Incorrect. Point D would lie at the point along the indifference curve where the marginal rate of substitution is high.
Incorrect While the slopes of the indifference curves are different it is not implausible that consumers relative preferences may change somewhat at different utility levels.
Incorrect. The two curves displayed are a typical example of nested indifference curves.