From the modern "ordinalist" perspective,when we change the scale used to measure utility:
A) the consumers indifference curves remain unchanged.
B) the consumers indifference curves will shift in the same direction as the change in the scale used to measure utility.
C) the consumers indifference curves will shift in the opposite direction as the change in the scale used to measure utility.
D) consumers will "move along" their indifference curves.

Question

Quizplus · Accepted Answer

From the modern "ordinalist" perspective, utility is viewed in terms of rankings or orderings of preferences rather than specific numerical values. Changing the scale used to measure utility does not affect the order of preferences, hence the consumer's indifference curves, which represent combinations of goods between which the consumer is indifferent, remain unchanged.

From the Modern "Ordinalist" Perspective,when We Change the Scale Used