Sam's budget is $60.00.The combinations of gasoline and coffee along one of Sam's indifference curves are combinations
A) that require the same total expenditure.
B) that he can afford with his $60.00 budget.
C) among which he is indifferent.
D) that give him the same marginal rate of substitution.
E) None of the above answers are correct.

Question

Quizplus · Accepted Answer

Indifference curves represent combinations of two goods that yield the same level of utility or satisfaction to the consumer. Therefore, the combinations along one indifference curve are those among which Sam is indifferent. The other options may not be true as combinations of gasoline and coffee may have different prices and marginal rates of substitution.

Sam's Budget Is $60