Question

Which is the least preferable bundle among the following options?

• A. Point above the indifference
• B. Point below the indifference
• C. Point on the X axis intercept of indifference curve
• D. Point on the Y axis intercept of indifference curve

Answer 1

The correct option is B Point below the indifference

Option B would only have inefficient bundles as the consumer not utilizing all the income. Options C and D are situations wherein the consumer will buy only one good. Option A is the most preferred bundle will be the points above the indifference curve. Though the consumer cannot attain this bundle due to insufficient income, it would be the most preferred bundle among the given options.