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Refer to Figures D and E

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Refer to Figures d and e.Bundle A is preferred to bundle B in Figure e and not in Figure d because: Refer to Figures d and e.Bundle A is preferred to bundle B in Figure e and not in Figure d because:   A)  the MRS between water in a rainy season and during a drought is higher in e than in d. B)  as the probability of a drought increases, consumers are no longer indifferent between the two bundles. C)  as the probability of a drought decreases, water in a rainy season becomes less valuable. D)  consumers are indifferent between bundles A and B as the probability of a drought increases.


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