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FIGURE 2-1
Quantity of
CDs, QC Indifference Curves for Bundles
of CDs and Movies Andrea is
indifferent between consuming 2
CDs and 1 movie (point A) or 1 CD
and 2 movies (point B), but she
prefers 2 CDs and 2 movies (point
C) to both. Utility is the same along
A C a given indifference curve; indiffer-
2
ence curves farther from the origin
represent higher utility levels.
IC2
B (U = U2)
1
Indifference
curve,
IC1 (U = U1)
0 1 2 Quantity of movies, QM