Question 2 Consider the following diagram. This diagram depicts indifference curves of three different consumers: Elena, Peter and Tim. They all face the same budget constraint (the bold black line). A, B, C, D represent some of the possible consumption bundles. Answer the following questions using this graph.  I have attached an image of the graph.   Q. In the above graph (on Page 18), shade all the “Worse-than-C” bundles for Elena (assuming she likes to consume both Muffins and Coffee).    If possible, please send a shot of a sketch of the shaded area

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Revealed Preferences and Budget Constraint Analysis

Revealed means “Let Out,” and Preference means “Choice”; Choice Reveals Preference.