A curve that represents combinations of two goods that yield equal levels of satisfaction isa(n):
A)indifference curve.
B)budget curve.
C)marginal utility curve.price-D.consumption curve.

Question

Quizplus · Accepted Answer

An indifference curve shows all the combinations of two goods that provide a consumer with equal levels of satisfaction. Therefore, option A is the correct choice. Option B, the budget curve, shows all the possible combinations of goods that a consumer can purchase with their given income, whereas option C, the marginal utility curve, shows the additional utility (satisfaction) a consumer receives as they consume more units of a good. Option D, the consumption curve, is not a commonly used term in economics.

A Curve That Represents Combinations of Two Goods That Yield