An indifference curve shows the possible combinations of goods X and Y when a consumer’s preferences are being examined. The diagram illustrates the consumer’s indifference curve for good X and good Y. What may be inferred 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.