The indifference curve in the diagram yields Juan 100 units of utility. If Juan's money income were to increase by 20 percent, the indifference curve would
A)shift leftward.
B)shift rightward.
C)become steeper.
D)not be affected.

Question

Quizplus · Accepted Answer

An indifference curve represents combinations of goods that provide the same level of utility. A change in income does not affect the position of an indifference curve, as it does not change the utility level associated with that curve.

The Indifference Curve in the Diagram Yields Juan 100 Units