An indifference curve is a line that shows combinations of goods among which a consumer
A) prefers one over the other.
B) places no value on any of the items.
C) can afford to buy all the combinations.
D) is indifferent.
E) believes that all combinations have the same marginal rate of substitution.

Question

Quizplus · Accepted Answer

An indifference curve represents all the combinations of goods that give a consumer the same level of satisfaction or utility, and therefore the consumer is indifferent between any two combinations on the same curve. Therefore, the correct answer is D - the consumer is indifferent between the combinations along the indifference curve.

An Indifference Curve Is a Line That Shows Combinations of Goods