The nonsatiation assumption says that given any two consumption bundles, if bundle 1 has more of one good and does not contain less of any other good then:
A)the individual is indifferent between bundle 1 and all other bundles.
B)bundle 1 is never preferred to others.
C)all other bundles are preferred to bundle 1.
D)bundle 1 is preferred to other bundles.

Question

Quizplus · Accepted Answer

The nonsatiation assumption states that more of a good is preferred to less, so if bundle 1 has more of one good and does not contain less of any other good, then it is preferred to all other bundles. Therefore, the correct answer is D.

The Nonsatiation Assumption Says That Given Any Two Consumption Bundles