If bundles A,B,and C lie on the same indifference curve,then:
A)A ≻ B ≻ C.
B)B ≻ C ≻ A.
C)A ∽ B ≻ C.
D)A ∽ B ∽ C.

Question

Quizplus · Accepted Answer

If the bundles A, B, and C lie on the same indifference curve, it means they provide the same level of utility to the consumer. Hence, the consumer is indifferent between these bundles, and none of them can be ranked higher or lower than the others. Therefore, the right answer is D, which means that A ∽ B ∽ C (A is indifferent to B and C, and B is also indifferent to A and C, and so on).

If Bundles A,B,and C Lie on the Same Indifference Curve,then