The following figure shows the indifference curves (IC) and the budget constraint (BC) of a consumer who needs to decide between the number of trousers and shirts he should purchase.

-Refer to the figure above.Which indifference curve depicts the highest level of utility?
A) IC₁
B) IC₂
C) IC₃
D) IC₄

Question

The following figure shows the indifference curves (IC) and the budget constraint (BC) of a consumer who needs to decide between the number of trousers and shirts he should purchase.
 
-Refer to the figure above.Which indifference curve depicts the highest level of utility?
A) IC₁ 
B) IC₂ 
C) IC₃ 
D) IC₄

Quizplus · Accepted Answer

Indifference curves further from the origin represent higher levels of utility. IC₄ is the furthest from the origin, indicating the highest utility level.

The Following Figure Shows the Indifference Curves (IC) and the Budget