Assume that two baskets A and B lie on the same indifference curve. Assume that basket A contains more of good B than basket B but less of good X than basket B . As the consumer moves down and to the right (from basket A to basket B ) along his indifference curve, total utility
A) increases.
B) remains constant.
C) decreases.
D) is ambiguous.

Question

Assume that two baskets A and B  lie on the same indifference curve. Assume that basket A contains more of good B than basket B but less of good X than basket B . As the consumer moves down and to the right (from basket A to basket B ) along his indifference curve, total utility
A) increases.
B) remains constant.
C) decreases.
D) is ambiguous.

Quizplus · Accepted Answer

Since the two baskets lie on the same indifference curve, the consumer is indifferent between them, meaning they provide the same level of utility. As the consumer moves from basket A to basket B, they are getting less of good B but more of good X, which may offset the decrease in utility from less of good B, resulting in a constant level of total utility.

Assume That Two Baskets a and B Lie on the Same