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3. Suppose that Alex is indifferent between A :(, y) = (1, 3) and B : (x, y) = (2, 1). Which of the following is always corre
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Answer #1

If Alex is indifferent between A (x,y): (1,3) and B(2,1), then among the options given option b (A and B are on the same indifference curve) will always be true.

Explanation

The indifference curve is the locus of bundles which give the consumer same level of satisfaction and hence consumer is indifferent between the bundles which lie on the same indifference curve. If the 2 bundles do not lie on the same indifference curve, the consumer will not be indifferent between them and will choose the one which is on the higher indifference curve. Hence, if consumer is indifferent between 2 bundles, it means the 2 bundles lie on the same indiffernce curve

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