An indifference curve shows all combinations of two goods
A) that can be purchased with a given income.
B) that can be purchased if relative prices are constant.
C) among which the consumer is indifferent.
D) that have the same marginal rate of substitution.
E) that have the same opportunity cost.

Question

Quizplus · Accepted Answer

An indifference curve represents all the combinations of two goods among which the consumer is indifferent, meaning they derive the same level of satisfaction or utility. Therefore, option C is the correct answer. Options A, B, D, and E are incorrect because they do not accurately describe the purpose or characteristics of an indifference curve.

An Indifference Curve Shows All Combinations of Two Goods