In a Preference Map,consumption Combinations on Higher Indifference Curves

question 17

Multiple Choice

In a preference map,consumption combinations on higher indifference curves

• A) always cost more than any combination on a lower indifference curve.
• B) always are preferred to combinations on lower indifference curves.
• C) always cost less than any combination on a lower indifference curve.
• D) always are less preferred than combinations on lower indifference curves.
• E) are sometimes more preferred, sometimes less preferred, and sometimes equally preferred than any combination on a lower indifference curve.

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Definitions:

Equilibrium Quantity

The quantity of goods or services at which supply equals demand, leading to market stability.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to a stable market condition.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market equilibrium price.

Demand Increases

A situation wherein there is a rise in the quantity of a product or service sought after by consumers at a given price level.