Which of the following will keep a consumer on the same indifference curve even if he wishes to move to a higher one?
A)An increase in the consumer's income
B)An increase in the relative price of one good the consumer purchases,other prices remaining unchanged
C)A decrease in the relative price of one good the consumer purchases,other prices remaining unchanged
D)A doubling of the consumer's income and a halving of the prices of all the goods the consumer purchases

Question

Quizplus · Accepted Answer

Doubling the consumer's income while halving the prices of all goods maintains the consumer's purchasing power, keeping them on the same indifference curve despite their desire to move to a higher one. This is because their ability to purchase a combination of goods relative to their preferences remains unchanged.

Which of the Following Will Keep a Consumer on the Same