If two combinations of two goods yield the same level of satisfaction, then they are:
A) on the same price line.
B) on the same budget constraint.
C) on the same indifference curve.
D) on different indifference curves.

Question

Quizplus · Accepted Answer

If two combinations of two goods yield the same level of satisfaction, then they are on the same indifference curve. An indifference curve represents all the possible combinations of two goods that give the consumer the same level of satisfaction or utility. Therefore, if two combinations are giving the same level of satisfaction, they must be on the same indifference curve.

If Two Combinations of Two Goods Yield the Same Level