An indifference curve shows all the combinations of bundles of two goods a person can purchase given a fixed amount of income.

Question

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An indifference curve shows all the combinations of two goods that provide a consumer with the same level of satisfaction or utility, not the combinations they can purchase with a fixed amount of income. The budget constraint, not the indifference curve, shows the combinations of goods a person can afford given their income and the prices of the goods.

An Indifference Curve Shows All the Combinations of Bundles of Two