Homework 14 (Ch 21) 2. Indifference curves and preferences Eric enjoys both beer and seltzer, Assume that the "more is better" principle holds for Eric, meaning that he 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 Eric's preferences, The points on Figure I represent combinations of seltzer and beer that Eric might choose to consume. Figure ? plots the same points as Figure 1, but it also shows some of Eric's indifference curves; In, In, and I,. Thus, Figure 2 gives more insight into Eric's preferences than Figure 1. Figure 1 Figure 2 40 BEER (CAM) BEER CUT O OL SELTZER [Cams) SELTZER (Cans) Complete the following table by indicating which bundles Eric strictly prefers to F given only the information in each figure Information Given By as E Figure 1 Figure 2 Indicate whether each of the following statements is true or false given the graphs Statement True False Figure 1 indicates that Eric prefers bundle C to G. Figure 2 indicates that Eric is indifferent among bundles C and G. Grade it Now Save & Continue Continue without saving