An indifference curve shows combinations of goods ________.
A) which the consumer prefers equally
B) that are affordable
C) that are inside or on the budget line
D) that have the same relative price

Question

Quizplus · Accepted Answer

An indifference curve is a graphical representation of consumer preferences. It shows all possible combinations of two goods that give a consumer equal levels of satisfaction or utility. Therefore, the answer is choice A, which states that an indifference curve shows combinations of goods which the consumer prefers equally.

An Indifference Curve Shows Combinations of Goods ________