Refer to Figure 3 below. The consumer chooses A on budget line Il and chooses B on budget line 12. Based on this information, which of the following rankings is able to describe the consumer's preferences on how he/she ranks the first is highest ranked and last is the lowest-ranked? Clothing I1 12 Food Figure 3 O a. The sequence is A-B-C-D O b. The sequence is A-B-D-C O c. NO correct answers because we do not have enough information to rank all four bundles. O d. The sequence is A-D-B-C
Refer to Figure 3 below. The consumer chooses A on budget line Il and chooses B on budget line 12. Based on this information, which of the following rankings is able to describe the consumer's preferences on how he/she ranks the first is highest ranked and last is the lowest-ranked? Clothing I1 12 Food Figure 3 O a. The sequence is A-B-C-D O b. The sequence is A-B-D-C O c. NO correct answers because we do not have enough information to rank all four bundles. O d. The sequence is A-D-B-C
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 2.5P
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Question
Transcribed Image Text:Refer to Figure 3 below. The consumer chooses A on budget line I1 and chooses B on budget line 12. Based on
this information, which of the following rankings is able to describe the consumer's preferences on how he/she
ranks the first is highest ranked and last is the lowest-ranked?
Clothing
I1
12
Food
Figure 3
O a. The sequence is A-B-C-D
O b. The sequence is A-B-D-C
O c. NO correct answers because we do not have enough information to rank all four bundles.
O d. The sequence is A-D-B-C
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