Economics (AS & A Level) · May / June 2026 · Paper 34 · Question 2
9708Indifference curves and budget lines
To analyse a consumer's preferences, an indifference curve represents possible combinations of goods X and Y. The diagram shows a consumer's indifference curve for good X and good Y. What can be concluded from the diagram?
- APoint E is the most desirable combination.
- BPoint F is less desirable than point G.
- CPoint G is the least desirable combination.
- DPoints E, F and G are equally desirable combinations.
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Correct answer: D. Points E, F and G are equally desirable combinations.
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