Dunuts IndilfereceXurve 3 linlllerence Curve Tdillerecet urve

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 14RQ: What is an externality?
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Figure#4
Indiflereocetur
Transcribed Image Text:Figure#4 Indiflereocetur
20. Refer to Figure#4. Which of the following statements is true for a consumer who moves from point A
to point D?
a. The consumer is definitely worse off b. The consumer is indifferent between point A and point D
c. It is difficult to compare the level of consumer satisfaction between points D and A
d. The consumer is likely to place a higher relative value on donuts at point A than at point D
Transcribed Image Text:20. Refer to Figure#4. Which of the following statements is true for a consumer who moves from point A to point D? a. The consumer is definitely worse off b. The consumer is indifferent between point A and point D c. It is difficult to compare the level of consumer satisfaction between points D and A d. The consumer is likely to place a higher relative value on donuts at point A than at point D
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