a) They are indifferent to the two different sets of priceB) They prefer a price of $1 for good #1 and a price of $2 for good #2 C) They prefer a price of $2 for good #1 and a price of $1 for good #2

The figure below displays one indifference curve for an individual. Bundle A, with q1 = 1 and q2 = 8, and bundle B, with 91 = 6 and 92 = 2, both fall on the indifference curve displayed. At bundle A, the slope of the indifference curve is MRS = -2. At bundle B, the slope of the indifference curve is MRS = --. Suppose the individual has $10 to spend (y = 10) on a bundle of the goods. Which set of prices would the individual prefer to face: (p1 = 1 & p2 = 2) or (p1 = 2 & p2 = 1)? 92 A