An indifference curve
A)connects a set of consumption and income bundles among which the consumer is indifferent.
B)connects a set of consumption bundles among which the consumer is indifferent.
C)connects a set of consumers who each have the same preferences.
D)is only useful in analyzing apathetic consumers.
E)is only useful in microeconomics.

Question

Quizplus · Accepted Answer

An indifference curve connects a set of consumption bundles among which the consumer is indifferent. This means that the consumer derives the same level of satisfaction or utility from any point on the same indifference curve. Indifference curves are useful in microeconomics for analyzing consumer behavior and preferences. However, they do not connect a set of consumers who have the same preferences nor are they only useful for apathetic consumers.

An Indifference Curve