Question

Chad, who is an aspiring bodybuilder and who consumes only protein shakes xp and chicken breasts xc, has indifference curves of the form xc=A/xp, where constant A corresponds to a higher indifference curve. Chad strictly prefers bundle (xp,xc)=(9,10) to the bundle:

Group of answer choices

(19,9)

(11,8)

(15,17)

(20,10)

none of these bundles

Answer 1

It shall be noted that the indifference curve A = xc*xp indicates various combinations of xc and xp such that A is constant.

A point on this indifference curve is (xp, xc) = (9, 10)

A point that represents xp > 9 and xc > 10 would indicate a point on the indifference curve that is a high indifference curve than an indifference curve in which the point (xp, xc) = (9, 10) exists, such that the person would strictly prefer over the bundle (xp, xc)=(9,10).

For the consumption bundle, where xp > 9 and xc > 10 holds, the person would strictly prefer over the bundle (xp, xc)=(9,10)

There is only one consumption bundle at which xp > 9 and xc > 10, that is (15,17)

Thus, (15, 17) is the correct answer.