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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Business

Roselyn Melton

18 January, 23:13

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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Devan Hurley · 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.