Activity: Tabulating Indifference Points

Transitivity of Indifference Along a Curve

Indifference between Karim's Bundles A and E

A consumer is currently consuming a bundle of 8 cups of coffee and 12 pastries per month. To map out a curve representing bundles of equal satisfaction, the consumer is asked how many pastries they would be willing to trade for one additional cup of coffee. The consumer states they are willing to give up 3 pastries. Based on this information, which of the following bundles would represent another point on the same curve?

Analyzing Trade-offs in Indifference Curve Construction

An economist is trying to determine a student's indifference curve for two goods: hours of study time and points on a final exam. Arrange the following steps in the correct logical order that the economist would follow to construct this curve.

An economist is trying to determine a student's indifference curve for two goods: hours of study time and points on a final exam. Arrange the following steps in the correct logical order that the economist would follow to construct this curve.

Identifying an Inconsistent Preference in Curve Construction

Analyzing Consumer Preferences for Curve Construction

When using a sequential questioning process to map out the points on a single indifference curve, the amount of one good a person is willing to sacrifice for one additional unit of the other good will remain constant at each step.

An economist is identifying a series of combinations of 'Good X' and 'Good Y' that provide a consumer with the same level of satisfaction. Starting with Bundle A (10 units of X, 50 units of Y), the economist determines the following sequence of equally preferred bundles by repeatedly asking how much Y the consumer would trade for one more unit of X:

• From A to B: The consumer trades 5 units of Y for 1 unit of X, resulting in Bundle B (11X, 45Y).
• From B to C: The consumer trades 4 units of Y for 1 unit of X, resulting in Bundle C (12X, 41Y).
• From C to D: The consumer trades 3 units of Y for 1 unit of X, resulting in Bundle D (13X, 38Y). Which of the following proposed bundles for the next point (Bundle E, with 14 units of X) would be inconsistent with the typical shape of a curve representing these preferences, which assumes a diminishing willingness to trade?

Indifference between Karim's Bundles A and D

Indifference Curve

Calculating a Point on an Indifference Curve

Evaluating a Consumer Preference Study