What is an indifference curve?
A)It is a curve that shows the total utility and the marginal utility derived from consuming a bundle of goods.
B)It is a curve that shows the combinations of consumption bundles that give the consumer the same utility.
C)It is a curve that shows a consumer's preference for various consumption bundles.
D)It is a curve that shows the trade-off a consumer faces among different combinations of consumption bundles.

Question

Quizplus · Accepted Answer

An indifference curve is a curve that shows the combinations of consumption bundles that give the consumer the same utility. It represents the different combinations of two goods that give the consumer the same level of satisfaction or utility, and the consumer is indifferent between these combinations. Therefore, choice B is the correct definition of an indifference curve.

What Is an Indifference Curve