Mary consumes two goods, X and Y. Her indifference curves have the usual shape. Consider the baskets (1, 3), (2, 2) and (3, 1). Mary is indifferent between (1, 3) and (3, 1). Which of the following statements is true? A.Mary is indifferent between the baskets (1, 3), (2, 2) and (3, 1) B.Mary prefers the baskets (1, 3),and (3, 1) to the basket (2, 2) C.Mary prefers the basket (2,2) to the baskets (1, 3),and (3, 1) D.We cannot say anything about which of the 3 baskets Mary prefers without knowing the equation of her utility function. E.Mary considers X and Y to be perfect complements

# Her indifference curves have the usual shape => the indifference curve is downward sloping and…

Answered: Mary consumes two goods, X and Y. Her…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Mary consumes two goods, X and Y. Her indifference curves have the usual shape. Consider the baskets (1, 3), (2, 2) and (3, 1). Mary is indifferent between (1, 3) and (3, 1). Which of the following statements is true?

Mary is indifferent between the baskets (1, 3), (2, 2) and (3, 1)

Mary prefers the baskets (1, 3),and (3, 1) to the basket (2, 2)

Mary prefers the basket (2,2) to the baskets (1, 3),and (3, 1)

We cannot say anything about which of the 3 baskets Mary prefers without knowing the equation of her utility function.

Mary considers X and Y to be perfect complements

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