Bundle a Contains 10 Units of Good X and 5

question 208

Multiple Choice

Bundle A contains 10 units of good X and 5 units of good Y. Bundle B contains 5 units of good X and 10 units of good Y. Bundle C contains 10 units of good X and 10 units of good Y. The consumer is indifferent between bundle A and bundle B. Assume that the consumer's preferences satisfy the four properties of indifference curves. Which of the following statements is correct?

• A)The consumer must prefer bundle C to either bundle A or B.
• B)Bundle A and bundle B lie on the same indifference curve.
• C)The consumer must prefer bundle B to bundle C.
• D)Both a) and b) are correct.

---

Definitions:

Annual Income Statement

A financial report that summarizes the revenues, costs, and expenses incurred during a financial year, showing the annual financial performance of a company.

Office Supplies Expense

An accounting category used to track the cost of office supplies used during a specific period.

Office Supplies

Materials and products stocked in an office environment used in its daily operations, such as pens, paper, staplers, and printers.

Year-End

The completion of an accounting period, typically a 12-month cycle, at which time a company prepares financial statements and closes its books.