Ana is trying to choose between three consumption bundles, A, B and C. A contains 4 packs of gummy bears and 3 packs of M&Ms. B contains 5 packs of gummy bears and 2 packs of M&Ms. C contains 3 packs of gummy bears and 2 packs of M&Ms. Assuming that Ana behaves as if more is better, we can say with some amount of certainty that:
A) Ana may be indifferent between A and B, but she will strictly prefer A to C.
B) Ana will prefer A over B, but C over A.
C) Ana will be indifferent between A and C.
D) Ana will strictly prefer C over B.

Question

Quizplus · Accepted Answer

Given the assumption that more is better, Ana would prefer bundles with more goods. Bundle A has more total goods (7 packs) than C (5 packs), making A strictly preferred to C. The comparison between A and B depends on her specific preferences for gummy bears versus M&Ms, so she might be indifferent between these if her preference for the mix in A equals her preference for the mix in B.

Ana Is Trying to Choose Between Three Consumption Bundles, A