Consider the Following Three Market Baskets If Basket a and Basket B Are on the Same

question 43

Multiple Choice

Consider the following three market baskets. $$\begin{array} { c c c } \text { Basket } & \text { Good x } & \text { Good y } \\\text { A } & 2 & 8 \\\text { B } & 10 & 2 \\\text { C } & 6 & 5\end{array}$$ If Basket A and Basket B are on the same indifference curve, preferences satisfy the usual assumptions, and the indifference curves have a diminishing marginal rate of substitution, which of the following is correct?

• A)Basket C is preferred to Basket A
• B)Basket A is preferred to Basket C
• C)The consumer is indifferent between Basket A and Basket C
• D)There is not enough information to determine how the consumer would rank Basket A relative to Basket C.

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