4. Indifference curves and preferences Aa Aa Nick likes both chocolate and ice c

Question

4. Indifference curves and preferences Aa Aa Nick likes both chocolate and ice cream. Assume that the "more is better" principle applies to Nick; that is, he would always prefer to consume more of either good, holding the consumption of the other good constant. (Using the terminology of preferences, this means you assume that his preferences are monotonic.) The points on the following diagram represent combinations of ice cream and chocolate that Nick might choose to consume CHOCOLATE (Bars per week] ICE CREAM ICones per week Given only the information on the preceding diagram, you can be sure that Nick prefers to combination B and that he prefers combination B to Given only the information on the preceding diagram, what can you say about how Nick ranks bundles A and C? O He is indifferent between A and C O There is not enough information to compare the utility he receives from C versus A. O He prefers C to A. O He prefers A to C.

Explanation / Answer

4)-

A)- The option 2nd is correct that is more information needed to explain.

B)- He prefers Bundle G to B.

He prefers combination B to D and H.

He is indifferent between B, C and E.

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