The marginal rate of substitution (MRS) at point A is greater than at point B. All indifference curves for a person cross at least one other indifference curve for that person. Each person has an infinite number of indifference curves. IC2 and IC3 could belong to different people. Different people have differently shaped indifference curves. ICI shows a preference for ketchup over mustard.
The marginal rate of substitution (MRS) at point A is greater than at point B. All indifference curves for a person cross at least one other indifference curve for that person. Each person has an infinite number of indifference curves. IC2 and IC3 could belong to different people. Different people have differently shaped indifference curves. ICI shows a preference for ketchup over mustard.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Determine what's true or false.
Transcribed Image Text:The marginal rate of substitution (MRS) at point A is greater than at point B.
All indifference curves for a person cross at least one other indifference curve for that person.
Each person has an infinite number of indifference curves.
IC2 and IC3 could belong to different people.
IC3 and IC2 could belong to the same person.
Different people have differently shaped indifference curves.
IC1 shows a preference for ketchup over mustard.
For any set of two goods, everyone has three different indifference curves.
Transcribed Image Text:Use the graph and your general knowledge of indifference
curves (ICs) to classify each of the statements as true or false.
Quantity of mustard
7.59
5.64
4.69
3.59
0
1.2
B
4.04
6.15
Quantity of ketchup
D
I
I
I
I
I
I
7.76
IC3
IC2
IC1
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