Answer each part of this question using the consumption bundles shown in Figure 5.1. Assume a consumer

Question:

Answer each part of this question using the consumption bundles shown in Figure 5.1. Assume a consumer has complete and transitive preferences for goods X and Y and does not experience satiation for any bundle given in Figure 5.1.a. In a comparison of bundles A and D, this consumer could rationally make which of the following statements: I prefer A to D, I prefer D to A, or I am indifferent between A and D?b. If this consumer is indifferent between bundles A and B, then bundle E must be ________(less, more, equally) preferred to bundle A. Explain your answer.c. Bundle C must be________ (less, more, equally) preferred to bundle F. Explain your answer.d. Bundle F must be________ (less, more, equally) preferred to bundle D. Explain your answer.

Figure 5.1