Questions: The graph illustrates Jessica's preferences for pizza and Coke using indifference curves (I1, I2, I3, and I4). Use the point drawing tool to indicate a bundle of pizza and Coke that Jessica would prefer to bundle A (Bundle B), a bundle for which Jessica would be indifferent with bundle A (Bundle C), and a bundle that would be inferior to bundle A (Bundle D). Draw each bundle such that it corresponds to a level of utility represented by one of the indifference curves shown in the graph. Properly label the points. Carefully follow the instructions above, and only draw the required objects.

To address the question regarding Jessica's preferences for pizza and Coke using indifference curves, we need to understand the concept of indifference curves and how they represent different levels of utility.

1. Bundle B (Preferred to Bundle A):

   • To find a bundle that Jessica would prefer to Bundle A, we need to locate a point on a higher indifference curve than the one passing through Bundle A. If Bundle A is on indifference curve \(I_2\), then Bundle B should be on \(I_3\) or \(I_4\), as these curves represent higher utility levels.

2. Bundle C (Indifferent to Bundle A):

   • A bundle that Jessica would be indifferent to Bundle A would lie on the same indifference curve as Bundle A. If Bundle A is on \(I_2\), then Bundle C should also be on \(I_2\).

3. Bundle D (Inferior to Bundle A):

   • A bundle that is inferior to Bundle A would be on a lower indifference curve. If Bundle A is on \(I_2\), then Bundle D should be on \(I_1\), as it represents a lower level of utility.

In summary, to determine the positions of Bundles B, C, and D:

• Bundle B should be on a higher indifference curve than Bundle A.
• Bundle C should be on the same indifference curve as Bundle A.
• Bundle D should be on a lower indifference curve than Bundle A.

These placements reflect Jessica's preferences and the utility levels associated with each bundle.