(Table: Bundles of X and Y) A consumer can choose between combinations of Goods
ID: 1165499 • Letter: #
Question
(Table: Bundles of X and Y) A consumer can choose between combinations of Goods X and Y. The table provided gives several bundles of X and Y and the utility produced by those combinations. Given this information, it can be said that:
bundle D is preferred to bundles A and B.
the consumer is indifferent among bundles A, B, and C.
bundles C and D are both preferred to bundles A and B.
bundle C is preferred to all other bundles.
A.bundle D is preferred to bundles A and B.
B.the consumer is indifferent among bundles A, B, and C.
C.bundles C and D are both preferred to bundles A and B.
D.bundle C is preferred to all other bundles.
Explanation / Answer
Ans : D ) bundle C is preferred to all other bundles.
Explanation :
Total utility is maximum at the consumption of bundle C.
At the consumption of bundle C , the total utility is 20 utils.
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