Question

Bundle A is strictly preferred to bundle B, and bundle B is strictly preferred to bundle C. If the utility associated with B is 58, which of the following are possible utility levels for bundle A and bundle C?
A. (44, 50,63)
B. (63, 50, 44)
C. (68,50,69)
D. (32,50,49)

Answer 1

Answer: (63, 50, 44)

Explanation:

Utility is the satisfaction that we derive as consumers when we consume or use a certain product.

Since Bundle A is strictly preferred to bundle B, and bundle B is strictly preferred to bundle C, it means that the value of Bundle A must be more than B and C while that of Bundle B must be more than bundle C.

Therefore, the correct option is B which is (63, 50, 44)