An indifference curve
A) connects a set of consumption bundles among which the consumer is indifferent.
B) is only useful in analyzing apathetic consumers.
C) connects a set of consumers who each have the same preferences.
D) is only useful in microeconomics.
E) connects a set of consumption and income bundles among which the consumer is indifferent.

Question

Quizplus · Accepted Answer

An indifference curve represents a set of consumption bundles among which the consumer is indifferent. The consumer views all points on the curve as equally desirable or satisfactory, meaning the consumer is indifferent between any of the bundles on the curve. The other options (B, C, D, and E) are all false statements.

An Indifference Curve