Indifference curves are used to derive _____ curves. Marginal utility analysis is used to derive ____ curves.
A) supply; supply
B) demand; supply
C) demand; demand
D) supply; demand

Question

Quizplus · Accepted Answer

Indifference curves are used to derive demand curves because they represent combinations of goods that provide the same level of utility to the consumer, helping to understand consumer preferences. Marginal utility analysis, which assesses the additional satisfaction from consuming one more unit of a good, is also used to derive demand curves by showing how consumption varies with changes in utility.

Indifference Curves Are Used to Derive _____ Curves