An indifference curve shows _____.
A)the relationship between total and marginal utility
B)the relationship between the quantity of a good and the maximum attainable satisfaction
C)the various combinations of two goods that give the consumer the same amount of satisfaction
D)the relationship between the price and quantity of a good that a consumer is able to purchase
E)that the quantities of a good that give the consumer maximum satisfaction are directly related to price

Question

Quizplus · Accepted Answer

An indifference curve is a graph showing the combinations of two goods that give the consumer the same amount of satisfaction, or utility. It represents the consumer's preferences between two goods and shows that different combinations of the two goods can provide the same level of satisfaction. The slope of the indifference curve represents the trade-off the consumer is willing to make between the two goods. A higher indifference curve indicates a higher level of satisfaction.

An Indifference Curve Shows _____