Bridge: Indifference Cu Q Econ F nal Exam Flashc / G suppose that the follo x G

Question

Bridge: Indifference Cu Q Econ F nal Exam Flashc / G suppose that the follo x G 1. Suppose That The Fo Q Econ Midterms Flashce X e Can You Please Explain x x x ? ? ? Secure ! https://www.fliptecon.com/CourseNiewProblem?unititemiDz361 6561&enrollmentD;:315623 Submit 5) Last week, Brian went to the club twice and to the cinema once. Because he received his paycheck, this week he goes to the club three times and to the cinema once. Brian has: a) moved to a higher point on his indifference curve b) moved to a lower point on his indifference curve O c) moved to a new indifference curve farther from the origin. d) moved to a new indifference curve closer to the origin. Submit (Survey Question) 6) Please explain your rationale for your answer to the previous question. Submit 7) Lower levels of satisfaction are found on indifference curves that are: Oa) upward sloping b) linear. 9:48 AM O Type here to search 7/25/2018 2

Explanation / Answer

Note that we are given an information about the new bundle and the old bundle. The old bundle has 1 cinema visit and 2 club visits while the new bundle has 1 cinema visit and 3 club visits. This implies that these bundles cannot be a part of a single indifference curve. This is because an indifference curve has convex preferences, implying to have more of one good, you need to have less of the other.

Hence old bundle lies on the old indifference curve while the new bundle lies above the old bundle on the new indifference curve that is afar from the origin since cinema vists are unchaned.

Select C

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