Assume an indifference curve yields a consumer 1,000 utils of total utility. If the consumer's budget increases by 50 percent, then the indifference curve:
A) shifts rightward.
B) shifts leftward.
C) becomes more linear.
D) is unchanged.

Question

Quizplus · Accepted Answer

An indifference curve represents combinations of goods that provide the same level of utility. A change in budget does not affect the utility level of an indifference curve; it affects the budget constraint, not the indifference curve itself.

Assume an Indifference Curve Yields a Consumer 1,000 Utils of Total