Consumers' preference are described by
A) indifference curves.
B) budget lines.
C) their wealth.
D) price level in the economy.

Question

Quizplus · Accepted Answer

Indifference curves show the different combinations of two goods that yield the same level of satisfaction to a consumer. This helps to describe the consumer's preferences. The budget line shows the different combinations of two goods that can be purchased with a given income and prices, but it does not directly describe preferences. Wealth and price level in the economy may influence consumer behavior, but they do not directly describe preferences.

Consumers' Preference Are Described by