Brian likes both chocolate and milk. Assume that the \"more is better\" principl

Question

Brian likes both chocolate and milk. Assume that the "more is better" principle applies to Brian; that is, he would always prefer to consume more of either good, holding the consumption of the other good constant. The points on Figure 1 represent combinations of milk and chocolate that Brian might choose to consume. Figure 2 shows the same points as Figure 1, but it also shows some of Brian's indifference curves: I, I2, and I. These curves show more information about Brian's preferences than Figure 1 Figure 1 Figure 2 MILK Glasses) MILK (Glasses) Complete the following table by indicating which bundles Brian strictly prefers to F given only the information in each figure Information Given By.. Figure 1 Figure 2 Indicate whether each of the following statements is true or false given the graphs True False Statement Figure 1 indicates that Brian is indifferent among bundles A and bundles H Figure 2 indicates that Brian prefers bundle A to bundle H

Explanation / Answer

It is given that Brian will prefer more of a good if another good is constant

By looking at Figure 1, we can say that Brian will strictly prefer B over F. As at B quantity of both goods are more than F so he will prefer that. All other points have at least quantity of one good less so we can not say by surity that he will prefer another point in comparison to F or not

The indifference curve which is more far from origin would be more preferrable.

By looking at Figure 2, we can say that Brian will strictly prefer B and C over F. As we can see from the indifference curve both B and C are on the indifference curve which is far from the the indifference curve where F lies so point B and C are more preferrable. All other points lie on the indiffernce curve that is the same indifference curve on which F lies or before that. So we can say that only points B and C are more preferrable.

Figure 1 does not indicate that Brian is indifferent between A and H as it is not showing indifference curve. So it is a false statement.

Figure 2 shows indifference curve and both A and H lie on same indifference curev so Brian is indifferent between A and H. Therefore, it is a false statement.

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