If A and B are bundles of goods that lie on the same indifference curve, one can assume the individual

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BlackTom AI · Accepted Answer

The question asks about what we can assume when two bundles A and B lie on the same indifference curve.

Since an indifference curve represents all bundles that yield the same level of satisfaction or utility to the consumer, any two bundles on that curve are considered equally preferred by the consumer.

Option analysis will proceed with the understanding that there are no alternative choices provided in the prompt. Nevertheless, here is the core idea: 
- If A and B are on the same indifference curve, the consumer is indifferent between them; they derive the same level of utility from both bundles. This is the fundamental meaning of an indifference curve in consumer theory. 
- Consequently, the statement that the consumer "enjoys bundle A and B equally" aligns with the standard interpretation of indifference curves: equal utility and equal satisfaction from both bundles.

To reinforce the concept further, recall that:
- Indifference curves are typically downward sloping, reflecting a trade-off between goods that keeps utility constant when one good decreases and the other increases.
- Any movement along the same curve does not change the satisfaction level, whereas moving to a higher indifference curve would imply a higher utility, and moving to a lower one would imply lower utility.

In the absence of alternative options to evaluate, the key takeaway remains: being on the same indifference curve implies equal levels of utility and hence equal overall satisfaction from bundles A and B.

ECON 4010-090 Summer 2025 Quiz 1

If A and B are bundles of goods that lie on the same indifference curve, one can assume the individual

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