A(n)_____ is a curve that shows all of the consumption bundles that yield the same level of total utility for an individual.
A)budget line
B)indifference curve
C)utility function
D)marginal rate of substitution

Question

Quizplus · Accepted Answer

An indifference curve is a curve that shows all of the consumption bundles that yield the same level of total utility for an individual. A budget line is a line that shows all the possible combinations of two goods that are affordable given the consumer's income and the prices of the goods. A utility function is a mathematical function that assigns a value to each possible bundle of goods that can be consumed by a consumer. A marginal rate of substitution is the rate at which a consumer is willing to trade one good for another while maintaining the same level of utility.

A(n)_____ Is a Curve That Shows All of the Consumption