If basket A has more of each normal good than basket B, which of the following are true?  Choose all that apply.

Question 4Answer

a.
Basket A and basket B are on the same indifference curve.

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b.
Basket A is on a higher indifference curve.

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c.
Basket A is on a lower indifference curve.

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d.
Basket A and basket B give the same amount of utility.

cross out

e.
Basket A gives more utility than basket B.

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f.
Basket B gives more utility than basket A.

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In consumer theory, indifference curves represent different levels of utility that a consumer derives from various combinations of goods. A higher indifference curve represents a higher level of utility. If basket A has more of each normal good than basket B, it implies the following:

- **Basket A provides more utility than basket B** because a consumer would prefer more of each good.

Thus, the correct statements are:

b. Basket A is on a higher indifference curve.

e. Basket A gives more utility than basket B.

Would you like more details or have any questions about this? 

Here are 5 questions you might find helpful:

1. What is the concept of an indifference curve in microeconomics?
2. How do indifference curves illustrate consumer preferences?
3. What does it mean for a good to be a "normal good"?
4. Can you explain the relationship between utility and indifference curves?
5. How does the marginal rate of substitution (MRS) relate to indifference curves?

**Tip:** Indifference curves cannot intersect because this would imply inconsistent preferences, which violates the assumption of rational behavior in consumers.

Explore how consumer theory applies to indifference curves and utility comparison in economics. Learn why basket A provides more utility than basket B when it contains more of each normal good. Discover the principles of consumer preferences and utility maximization.

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