Which of the following statements about indifference curve analysis is false?
A)Indifference curve analysis is identical to the n- good problem.
B)Indifference curve analysis is a special case of the n- good problem.
C)Indifference curve analysis simplifies the n- good problem for detailed study.
D)Indifference curve analysis relies on the same assumptions as the n- good problem.

Question

Quizplus · Accepted Answer

Indifference curve analysis is a part of the n- good problem, but it is not identical to it. The n- good problem deals with optimizing consumption of multiple goods while taking into account various factors such as prices, income, and preferences. Indifference curve analysis, on the other hand, focuses solely on the preferences of the consumer and how they can be represented graphically.

Which of the Following Statements About Indifference Curve Analysis Is