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3. Indifference curves and preferences Yvette enjoys both pretzels and cookies. Assume that the more is better principle holds for Yvette, meaning that she would

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3. Indifference curves and preferences Yvette enjoys both pretzels and cookies. Assume that the "more is better" principle holds for Yvette, meaning that she would always prefer to consume more of either good, holding the level of consumption of the other good constant. The two figures below present information regarding Yvette's preferences. The points on Figure 1 represent combinations of cookies and pretzels that Yvette might choose to consume. Figure 2 plots the same points as Figure 1, but it also shows some of Yvette's indifference curves: I1, I2, and I3. Thus, Figure 2 gives more insight into Yvette's preferences than Figure 1. (? (? Figure 1 Figure 2 D A PRETZELS (Bags) PRETZELS (Bags) B COOKIES (Packages) COOKIES (Packages) Complete the following table by indicating which bundles Yvette strictly prefers to H given only the information in each figure. Information Given By... A B C D E F G Figure 1 Figure 2 0 0 0 0 0 0 0 Indicate whether each of the following statements is true or false given the graphs. Statement True False Figure 1 does not provide enough information to compare the utility Yvette receives from C versus B. O O Figure 2 indicates that Yvette is indifferent among bundles C and B. O O

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