Bundle A contains 10 units of good X and 5 units of good Y. Bundle B contains 5 units of good X and 10 units of good Y. Bundle C contains 10 units of good X and 10 units of good Y. The consumer is indifferent between bundle A and bundle B. Assume that the consumer's preferences satisfy the four properties of indifference curves. Which of the following statements is correct?
A) The consumer must prefer bundle C to either bundle A or B.
B) Bundle A and bundle B lie on the same indifference curve.
C) The consumer must prefer bundle B to bundle C.
D) Both a) and b) are correct.
Correct Answer:
Verified
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