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Top Right: Consumers experience diminishing marginal utility Bottom Left: These

ID: 1198052 • Letter: T

Question

Top Right: Consumers experience diminishing marginal utility

Bottom Left: These curves are consistent...

Bottom Right: Any Point can appear on only one indifference curve.

However, it told me I was wrong? Please help

Suppose that Kat likes arrows and food. Below are Kat's potential indifference curves for these two goods. Some of these curves are drawn in a way that's inconsistent with assumptions usually made about utility. Place the label in each box according to which assumption is violated. It is possible that one graph is drawn properly Arrows Arrows Assumption that is violated 12 12 Consumers get more utility from some goods than other:s Any point can appear on only one indifference curve Food Food More of a good is better than less These curves are consistent Arrows Arrows with assumptions about utility 12 Consumers experience diminishing marginal utility 12 Food Food

Explanation / Answer

Top Left: Consumers get more utility from some goods than others (extreme points are better than a mix of both. Corner solutions will be preferred)

Top Right: Consumers get more utility from some goods than others (Arrows is good and food is bad for consumer)

Bottom Left: These curves are consistent (downward sloping IC)

Bottom Right: Any Point can appear on only one indifference curve. (IC cannot intersect each other and no one point can lie on both the curves)