If two consumption bundles lie on the same indifference curve,then
A) The consumer prefers the bundle that is farthest from the origin
B) The consumer does not prefer one bundle over the other
C) The consumer prefers the bundle that is farthest to the right on the indifference curve
D) The consumer prefers the bundle that is farthest to the left on the indifference curve

Question

Quizplus · Accepted Answer

Indifference curves represent all the consumption bundles that give the same level of satisfaction to the consumer. So if two consumption bundles lie on the same indifference curve, it means that the consumer is equally satisfied with both bundles and does not prefer one over the other. Therefore, the answer is B. The distance from the origin or the position on the curve does not determine the consumer's preference.

If Two Consumption Bundles Lie on the Same Indifference Curve,then