I need some verification on my answer for this question! A consumer has rational
ID: 1133730 • Letter: I
Question
I need some verification on my answer for this question!
A consumer has rational and well behaved preferences. A=(6,4) and C=(4,6).
A.) The consumer is indifferent between the two bundles.
B.) The consumer prefers bundle A to bundle B
C.) There is not enough information to know which bundle the consumer prefers
D.) The consumer prefers bundle B to bundle A
I would argue option A. The argument of monotonicity would not hold since both bundles are strictly the same size. Thus the consumer would be indifferent between both.
A.) The consumer is indifferent between the two bundles.
B.) The consumer prefers bundle A to bundle B
C.) There is not enough information to know which bundle the consumer prefers
D.) The consumer prefers bundle B to bundle A
I would argue option A. The argument of monotonicity would not hold since both bundles are strictly the same size. Thus the consumer would be indifferent between both.
Explanation / Answer
The asnwer is A -) The consumer is indifferent between the two bundles.
because, in both option A= (6,4) and C=(4,6) posses the same utility to the consumers . The consumer is indifferent when various points of different combinations of two goods posses the same level of utility.