Question
Hi, can you please help me with this question? Consider indifference curves for the consumption of two goods, beer and pizza. The indifference curves for
Hi, can you please help me with this question?
Consider indifference curves for the consumption of two goods, beer and pizza. The indifference curves for these goods are drawn with the number of pizza slices on the horizontal axis and bottles of beer on the vertical axis. You are told that consumer A has a flatter indifference curve than consumer B. In this case, which of the following statements is true:
a.
Given the same amount of pizza, consumer A is willing to swap one slice of pizza with a smaller amount of beer than consumer B.
b.
The indifference curves of the two consumers cannot cross.
c.
The price of beer relative to the price of pizza is higher for consumer A than for consumer B.
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