Consider indifference curves for consumption of milk and chocolates. (You may assume that both are ‘goods’.) The indifference curves are drawn with the number of chocolate bars on the horizontal axis and the pints of milk on the vertical axis. You are given that consumer A has a flatter indifference curve than consumer B. Using the given assumptions read the following statements and select the correct one.

Question

Answer

Consumer B dislikes milk more than Consumer A dislikes it

Answer

Given the same amount of chocolates, consumer A is willing to swap one bar of chocolate with a smaller amount of milk than consumer B.

Answer

The indifference curves of the two consumers cannot cross.

Answer

The price of milk relative to the price of chocolates is higher for consumer A than for consumer B.

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Consider indifference curves for consumption of milk and chocolates. (You may as...

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