Indifference curves can be used to rank all possible bundles of commodities.

Question

Quizplus · Accepted Answer

Indifference curves are used to represent preferences of an individual and can be used to rank all possible bundles of commodities that provide the same level of satisfaction. The higher the indifference curve, the higher the level of satisfaction. Therefore, by comparing the indifference curves, one can rank the different bundles of commodities.

Indifference Curves Can Be Used to Rank All Possible Bundles