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 connects a set of consumption bundles among which the consumer is indifferent. This means that each point on the curve represents a combination of goods that provides the consumer with the same level of satisfaction, and the consumer is indifferent between these different combinations. Indifference curves are a fundamental tool in microeconomics for analyzing consumer behavior and choice.

An Indifference Curve