As a consumer moves away from the origin onto higher indifference curves,what happens?
A) Nothing
B) The consumer reaches more preferred combinations of goods.
C) The consumer reaches less preferred combinations of goods.
D) The consumer reaches more affordable combinations of goods.
E) None of the above because it is impossible to move from one indifference curve to another.

Question

Quizplus · Accepted Answer

As a consumer moves away from the origin onto higher indifference curves, it implies that the consumer is achieving a higher level of satisfaction or utility. This is because a higher indifference curve represents a higher level of satisfaction. Therefore, the consumer is reaching more preferred combinations of goods.

As a Consumer Moves Away from the Origin onto Higher