Consider three bundles: Bundle A: 2 DVDs and 3 CDs
Bundle B: 3 DVDs and 1 CD
Bundle C: 1 DVD and 3 CDs
Which of the following violates the assumption of nonsatiated preferences?
A) Bart prefers Bundle C to B and Bundle A to C.
B) Mona prefers Bundle C to B and is indifferent between Bundles A and B.
C) Don prefers Bundle A to C and is indifferent between Bundles B and C.
D) Patty prefers Bundle A to C and Bundle B to C

Question

Quizplus · Accepted Answer

Mona's indifference between Bundles A and B, despite A having more CDs, violates nonsatiation, which assumes more is always preferred.

Consider Three Bundles: Bundle A: 2 DVDs and 3 CDs