If the utility number associated with consumption bundle a is exactly half the utility number associated with bundle b, then:
A)bundle b is twice as desirable as a.
B)bundle b is preferred to bundle a.
C)bundle b offers as much utility as two of bundle a.
D)bundle a is preferred to bundle b.

Question

Quizplus · Accepted Answer

Since the utility number associated with bundle b is twice the utility number associated with bundle a, it means that bundle b is more desirable or preferred than bundle a. Therefore, option B is the correct answer.

If the Utility Number Associated with Consumption Bundle a Is