Assume Lorenzo dislikes doing homework and likes playing video games. Given these preferences, increasing Lorenzo's time spent playing video games while holding time spent doing homework constant Lorenzo's utility. Decreasing Lorenzo's time spent doing homework while holding time spent playing video games constant his utility.
The following graphs depict two sets of indifference curves.
Graph AHOURS OF HOMEWORKHOURS OF VIDEO GAMESU1U2U3Graph BHOURS OF HOMEWORKHOURS OF VIDEO GAMESU1U2U3
Which graph reflects Lorenzo's preferences? (Hint: Assume that utility increases from U1
to U3
.)
Graph A
Graph B