A curve/line that shows combinations of goods among which a consumer would not desire one combination of goods to another combination of goods on that curve/line is called
A) a budget line.
B) an indifference curve.
C) a utility possibilities curve.
D) a demand curve.

Question

Quizplus · Accepted Answer

This is the definition of an indifference curve, which represents all the combination of goods that give the consumers the same level of satisfaction or utility. The slope of an indifference curve represents the marginal rate of substitution, meaning the rate at which a consumer is willing to exchange one good for another while staying on the same level of satisfaction. A budget line shows all the combinations of goods a consumer can afford given their budget constraint, a utility possibilities curve shows the maximum utility a consumer can achieve given a set of goods and their utility functions, and a demand curve shows the quantity of a good a consumer is willing and able to buy at different prices.

A Curve/line That Shows Combinations of Goods Among Which a Consumer