A(n)________ shows the bundles of two goods that provide an equal level of satisfaction to the consumer.
A) budget set
B) indifference curve
C) demand curve
D) budget constraint

Question

Quizplus · Accepted Answer

Indifference curves are the graphical representation of the consumer's preferences. They show the different combinations of two goods that provide an equal level of satisfaction to the consumer. Therefore, B is the correct choice. A budget set shows the different combinations a consumer can afford given their income and the prices of the goods, but it does not show equal levels of satisfaction. A demand curve shows the quantity of a good that a consumer is willing and able to buy at different prices, but it does not show equal levels of satisfaction. A budget constraint shows the limit on the consumption choices of a consumer given their income and the prices of the goods, but it does not show equal levels of satisfaction.

A(n)________ Shows the Bundles of Two Goods That Provide an Equal