Robert only consumes X and Y, and his indifference curves have the usual convex shape. Consider the consumption bundles (3, 9), (6, 6), and (9, 3) (hint: they lie on a straight line). If Robert is indifferent between (3, 9) and (9, 3), then:

A) he prefers (3, 9) over (6, 6).

B) he prefers (9, 3) over (6, 6).

C) he prefers (6, 6) over both (3, 9) and (9, 3).

D) he prefers (6,6) over (3,9) but not over (9,3).

Question

Business

Isai Russell

11 March, 14:41

Robert only consumes X and Y, and his indifference curves have the usual convex shape. Consider the consumption bundles (3, 9), (6, 6), and (9, 3) (hint: they lie on a straight line). If Robert is indifferent between (3, 9) and (9, 3), then:

A) he prefers (3, 9) over (6, 6).

B) he prefers (9, 3) over (6, 6).

C) he prefers (6, 6) over both (3, 9) and (9, 3).

D) he prefers (6,6) over (3,9) but not over (9,3).

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Answers (1)

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Aidan Bond · Answer 1

C) he prefers (6, 6) over both (3, 9) and (9, 3).

Explanation:

Robert has 3 options for combinations of X and Y that is (3, 9), (6, 6), and (9, 3).

If he is indifferent to combinations (3,9) and (9,3). It means his preference is the third option (6,6).

Robert prefers to have equal combination of X and Y.