Given a particular consumer's indifference map, the further the indifference curve is from the origin
A) the higher the level of satisfaction.
B) the lower the marginal rate of substitution.
C) the more goods are included.
D) the higher 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 can consume more of both goods while remaining on the same level of satisfaction. Indifference curves that are closer to the origin represent lower levels of satisfaction as they indicate that the consumer can only have a combination of goods that is less preferred.

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