Assume that two baskets and lie on the same indifference curve. Assume that basket contains more of good than basket but less of good than basket. As the consumer moves down and to the right (from basket to basket)along his indifference curve, total utilityL
A)increases.
B)remains constant.
C)decreases.
D)is ambiguous.

Question

Quizplus · Accepted Answer

Since both baskets lie on the same indifference curve, they provide the same level of satisfaction to the consumer. Therefore, as the consumer moves from one basket to the other along the same indifference curve, the total utility remains constant. Since the two baskets lie on the same indifference curve, they provide the consumer with the same level of satisfaction/utility. As the consumer moves from one basket to the other, the increase in the quantity of one good is offset by the decrease in the quantity of the other good, so total utility remains constant.

Assume That Two Baskets and Lie on the Same Indifference