A consumer's preferences provide a ranking of
A)all possible consumption bundles.
B)only the consumption bundles that fall on the same indifference curve.
C)consumption bundles based their prices.
D)consumption bundles based on the consumer's income.

Question

Quizplus · Accepted Answer

Consumer preferences provide a ranking of all possible consumption bundles, regardless of their prices or the consumer's income. The ranking is based on the consumer's subjective evaluations of the utility received from each bundle. Therefore, option A is the correct answer. Options B, C, and D are incorrect because consumer preferences are not limited to bundles on the same indifference curve, or only based on prices or income.

A Consumer's Preferences Provide a Ranking of