An indifference curve shows all
A)possible equilibrium positions on an indifference map.
B)equilibrium combinations of two products that are obtainable with a given money income.
C)combinations of two products that will yield the same utility to a consumer.
D)possible combinations of two products that a consumer can purchase, given her income and the prices of the products.

Question

Quizplus · Accepted Answer

An indifference curve shows different combinations of two products that will give the same level of utility or satisfaction to a consumer. It does not necessarily signify equilibrium or affordability, but rather the consumer's willingness to exchange one product for another while maintaining the same level of satisfaction.

An Indifference Curve Shows All