If two consumption points are not on the same indifference curve, then one point is ________.
A) a substitute for the other point
B) unaffordable and the other is affordable
C) preferred to the other
D) more expensive than the other

Question

Quizplus · Accepted Answer

Indifference curves represent a level of satisfaction or utility for a consumer. If two consumption points are not on the same indifference curve, it means that one point provides a higher level of satisfaction to the consumer than the other point. Therefore, the consumer prefers one point over the other.

If Two Consumption Points Are Not on the Same Indifference