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Crystal enjoys both beer and seltzer. Assume that the more is better principle holds for Crystal, meaning that she would always prefer to consume more
Crystal enjoys both beer and seltzer. Assume that the "more is better" principle holds for Crystal, 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 Crystal's preferences. The points on Figure 1 represent combinations of seltzer and beer that Crystal might choose to consume. Figure 2 plots the same points as Figure 1, but it also shows some of Crystal's indifference curves: I1 , I2 , and I3 . Thus, Figure 2 gives more insight into Crystal's preferences than Figure 1
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