We use indifference curves because
A) households on average do not care.
B) they help represent preferences.
C) households sometimes make mistakes.
D) they formalize the production process.

Question

Quizplus · Accepted Answer

Indifference curves are used to represent the preferences of households or individuals. They show all the possible combinations of two goods that provide the same level of satisfaction or utility to the consumer. By analyzing indifference curves, economists can understand how consumers make choices and can determine their preferences.

We Use Indifference Curves Because