Consumers' preferences are described by
A) budget lines.
B) indifference curves.
C) relative prices.
D) household income.
E) demand curves.

Question

Quizplus · Accepted Answer

Indifference curves show the different combinations of two goods that give the same level of utility, reflecting the consumer's preferences. Therefore, B is the best choice. Budget lines and relative prices reflect the consumer's affordability, while household income and demand curves reflect the quantity demanded at different prices, which are not directly related to preferences.

Consumers' Preferences Are Described by