An indifference curve shows _____.
A)all the combinations of two products between which the consumer is indifferent
B)all possible combinations of the two products available to the consumer that can be purchased with a given level of income
C)the single best bundle of consumption for the consumer given two products and a particular income level
D)how the total satisfaction derived from consuming alternative market baskets changes along the curve

Question

Quizplus · Accepted Answer

An indifference curve shows all the combinations of two products between which the consumer is indifferent. This means that the consumer derives the same level of satisfaction from each combination of the two products on the curve. Therefore, any point on the curve represents an equally preferred consumption bundle for the consumer. Hence, choice A is the correct answer.

An Indifference Curve Shows _____