An indifference curve
A) connects a set of consumption bundles among which the consumer is indifferent.
B) is only useful in analyzing apathetic consumers.
C) connects a set of consumers who each have the same preferences.
D) is only useful in microeconomics.

Question

Quizplus · Accepted Answer

An indifference curve represents a set of consumption bundles that provide the same level of satisfaction or utility to the consumer. The consumer is indifferent between any two consumption bundles on the same indifference curve because they provide the same level of satisfaction. Therefore, option A is the correct choice. Options B, C, and D are incorrect as indifference curves are not limited to apathetic consumers or a set of consumers with the same preferences, nor are they exclusive to microeconomics.

An Indifference Curve