Indifference curves are drawn on a diagram with the
A) price of a good on the vertical axis and its quantity on the horizontal axis.
B) price of one good on the vertical axis and the price of another good on the horizontal axis.
C) quantity of a good on the vertical axis and its price on the horizontal axis.
D) quantity of one good on the vertical axis and the quantity of another good on the horizontal axis.

Question

Quizplus · Accepted Answer

Indifference curves are used to represent the different combinations of two goods that give a consumer the same level of satisfaction. Therefore, the quantity of one good is plotted on the vertical axis, while the quantity of another good is plotted on the horizontal axis. This allows us to see the tradeoffs a consumer is willing to make between the two goods.

Indifference Curves Are Drawn on a Diagram with the