12 2 SolutionThe Indifference curve I2 Represents the bundle

Solution

The Indifference curve I₂ Represents the bundles which are equally preferred or indifferent by the consumer. So the points b and c are indifferent or bc. Since bundle a lies above the indifference curve and so by property of monotonicty a is strictly preferred to both b and c or ab and ac. Since bundle d lies below the indifference curve and so by property of monotonicty d is not preferred to any of the bundles a.b and c or da, db and dc.

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