Indifference curve analysis
A) presumes, as does utility analysis, that satisfaction is numerically measurable.
B) presumes, unlike utility analysis, that satisfaction is numerically measurable.
C) presumes only that the consumer can say one combination of two goods yields more or less utility than some other combination.
D) is in conflict with the idea of a downsloping demand curve.

Question

Quizplus · Accepted Answer

Indifference curve analysis does not measure satisfaction numerically like utility analysis does. Instead, it presumes that a consumer can state whether one combination of goods gives more or less satisfaction than another combination. The theory of indifference curves is not in conflict with the idea of a downsloping demand curve, as both concepts are used to explain consumer behavior.

Indifference Curve Analysis