A curve that shows all of the alternative consumption bundles that the consumer likes equally well is called:
A) a budget constraint.
B) an indifference curve.
C) an individual demand curve.
D) a consumption bundle curve.

Question

Quizplus · Accepted Answer

An indifference curve represents all the different combinations of two goods that give a consumer the same level of satisfaction or utility. Therefore, option B is the correct answer. A budget constraint shows the different combinations of two goods that a consumer can purchase given their income and the prices of the goods. An individual demand curve shows the quantity of a good that an individual consumer will demand at different prices. A consumption bundle curve is not a commonly used term in economics.

A Curve That Shows All of the Alternative Consumption Bundles