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.

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Definitions:

Active Reading

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The ability to understand and grasp the meaning of something.

Previewing

A reading strategy that involves quickly reviewing a text to get an overview of its content before detailed reading.