The figure shows the indifference curves of a student for the two 'goods', free time and final grade. Based on this information, which of the following statements is correct?
Understand the Problem
The question is asking which statement is correct based on a graph showing the relationship between hours of free time and final grades, along with provided options that relate to the student's preferences between free time and grades.
Answer
The student is willing to give up 34 grade points for more free time at A.
The statement 'At A, the student is willing to give up 34 grade points for five extra hours of free time.' is correct.
Answer for screen readers
The statement 'At A, the student is willing to give up 34 grade points for five extra hours of free time.' is correct.
More Information
Indifference curves show the combinations of two goods that give the same satisfaction. The steepness of the curve represents the student's willingness to trade one good for the other.
Tips
A common mistake is not correctly interpreting the trade-off shown by the slope of the indifference curve.
Sources
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