In the diagram to the right, we have five different combinations of movies and b

Question

In the diagram to the right, we have five different combinations of movies and books. Combination A represents 2 movies and 3 books. Combination C represents more books (7) and the same number of movies (2). Points B, E, and Fare other combinations with more movies, more books, or more of both. 101 Note that an indifference curve has been added. We now know that: 8- When compared to combination E, combination B providessatisfaction to the consumer. When compared to combination E, combination C provides When compared to combination A, combination C provides Vsatisfaction to the consumer Vsatisfaction to the consumer 1 2345678 9 10 Movies

Explanation / Answer

a) When compared to E which is above the indifference curve, combination B provides "less" satisfaction to the consumer.

b) when compared to combination E, Combination C provides "less" satisfaction to the consumer. (because C is on the same indifference curve it will be same as above answer.)

c) When compared to combination A, Combination C provides "more" satisfaction to the consumer. (becasue it is on the higher indifference curve.)

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---