#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
The assumption of non-satiation (more is always better) ensures that all bundles lying directly above, directly to the right of, or both above and to the right (more wine and more bread) of point a must be preferred to bundle a. That set of bundles is called the “preferred-to-bundle-a” set. Correspondingly, all the bundles that lie directly below, to the left of, and both below and to the left of bundle a must yield less utility and therefore would be called the “dominated-by-bundle-a” set.