Figure 21-7 -Refer to Figure 21-7.Which of the Following Statements Is Correct

question 342

Multiple Choice

Figure 21-7
-Refer to Figure 21-7.Which of the following statements is correct?

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

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