An indifference curve is best defined as
A) a boundary line between attainable and unattainable choices.
B) is a concave curve which ranks preferred consumption bundles.
C) a boundary line defining production possibilities.
D) the set of all bundles that the consumer enjoys equally well.
E) the level of consumption where a consumer is indifferent to receiving more consumption.

Question

Quizplus · Accepted Answer

An indifference curve represents the combinations of goods that give a consumer the same level of utility or satisfaction. It is a curve that shows all the possible bundles of two goods between which a consumer is indifferent, meaning they would be equally satisfied consuming any of these bundles. Option D correctly defines an indifference curve as the set of all bundles that the consumer enjoys equally well.

An Indifference Curve Is Best Defined as