Given a particular consumer's indifference map,the further the indifference curve is from the origin
A)the higher the marginal rate of substitution.
B)the higher the level of satisfaction.
C)the more goods are included.
D)the lower the marginal rate of substitution.
E)the lower the level of satisfaction.

Question

Quizplus · Accepted Answer

The further the indifference curve is from the origin, the higher the level of satisfaction as it indicates that the consumer prefers more of both goods. This means that the consumer is better off at a higher level of utility, which corresponds to a higher level of satisfaction. The marginal rate of substitution (MRS) may or may not be higher depending on the shape and slope of the indifference curve.

Given a Particular Consumer's Indifference Map,the Further the Indifference Curve