A curve that represents all combinations of market baskets that provide the same level of utility to a consumer is called:
A) a budget line.
B) an isoquant.
C) an indifference curve.
D) a demand curve.
E) none of the above

Question

Quizplus · Accepted Answer

An indifference curve represents a set of combinations of goods that provide the consumer with the same level of satisfaction or utility. Therefore, option C is the correct answer. Option A represents the combinations of goods that can be purchased with a given income at prevailing market prices, while option B represents the possible combinations of inputs that yield the same level of output in production. Option D represents the willingness of consumers to buy a product at different prices, while option E has no relevance to this question.

A Curve That Represents All Combinations of Market Baskets That