A consumer allocates all income between two products, A and B. If, on an indifference map, the equilibrium position shifts onto a higher indifference curve, then
A)the consumer must be purchasing more of both products.
B)the relative prices of A and B must have changed.
C)the prices of A and B must have increased.
D)total utility must have increased.

Question

Quizplus · Accepted Answer

Moving to a higher indifference curve indicates an increase in total utility, as each curve represents a level of utility, with higher curves indicating higher levels of satisfaction.

A Consumer Allocates All Income Between Two Products, a and B