Indifference curves located closer to the origin
A) are less preferred to those located farther away from the origin
B) are more preferred to those located farther away from the origin
C) cannot be tangent to a budget line
D) eventually become straight lines that coincide with the budget line
E) represent preferences that are not rational

Question

Quizplus · Accepted Answer

Indifference curves represent combinations of goods that provide the same level of utility to the consumer. Those located farther from the origin represent combinations of goods that provide higher utility, making them more preferred.

Indifference Curves Located Closer to the Origin