If two bundles of goods give a consumer the same satisfaction, the consumer must be
A)on her budget constraint.
B)in a position of equilibrium.
C)indifferent between the bundles.
D)Both a and c are correct.

Question

Quizplus · Accepted Answer

If two bundles of goods give the consumer the same satisfaction, the consumer is indifferent between the two bundles. This means that the consumer is not willing to pay more for one bundle over the other since both bundles provide the same level of satisfaction. Therefore, the consumer is not in a position of equilibrium or on her budget constraint, but rather in a state of indifference.

If Two Bundles of Goods Give a Consumer the Same