As a consumer moves along an indifference curve:
A) prices are held constant, but the consumer's budget changes.
B) the consumer's budget is held constant, but prices change.
C) prices and the consumer's budget are held constant, but total utility changes.
D) total utility is held constant, but prices, quantities, and the consumer's budget may change.

Question

Quizplus · Accepted Answer

An indifference curve represents combinations of goods that provide the consumer with the same level of utility, meaning total utility is constant along the curve. Prices, quantities, and the consumer's budget can change as long as the consumer remains on the same indifference curve.

As a Consumer Moves Along an Indifference Curve