Robert only consumes X and Y,and his indifference curves have the usual convex shape.Consider the consumption bundles (3,9),(6,6),and (9,3)(Hint: The consumption bundles completely exhaust Robert's income).If Robert is indifferent between (3,9)and (9,3),then:
A)he prefers (3,9)over (6,6).
B)he prefers (9,3)over (6,6).
C)he prefers (6,6)over both (3,9)and (9,3).
D)he prefers (6,6)over (3,9)but not over (9,3).

Question

Quizplus · Accepted Answer

If Robert is indifferent between (3,9) and (9,3), this means that the two consumption bundles give him the same level of utility. Since his indifference curves are convex, we know that he prefers bundles on a higher indifference curve to those on a lower indifference curve.

Now let's look at the consumption bundle (6,6). Robert can obtain this bundle by taking an equal amount of both X and Y. Since this bundle lies on a higher indifference curve than (3,9) and (9,3) (which are on the same indifference curve), we know that Robert prefers (6,6) to both (3,9) and (9,3). Therefore, the answer is C.

Robert Only Consumes X and Y,and His Indifference Curves Have