If preferences are rational and wellbehaved which of the fol

If preferences are rational and well-behaved, which of the following bundles would not be preferred to A and B? A-(6,0): B (0, 5): A ~ B (0,6) O (0,4) O (2,3) (3,2)

Solution

Option 2: (0,4)

In option 2, the bundle (0,4) cannot be preferred over bundle B = (0,5). Note that good 1 is same in both the bundles but good 2 is more than bundle B. Since A ~ B, and (0,4) is has less of good 2, it cannot be the case that (0,4) would be preferred to A and B.