A set of indifference curves on a graph is called
A) a difference map.
B) an indifference map.
C) a budget map.
D) a cluster.

Question

Quizplus · Accepted Answer

The set of indifference curves on a graph represents the consumer's preferences for different combinations of two goods. Since the consumer is indifferent between any two combinations on the same indifference curve, the set of indifference curves is called an indifference map. Choice A is incorrect because a difference map is not a commonly used economic term. Choice C is incorrect because a budget map refers to a graph that shows the different combinations of two goods that a consumer can afford given their income and the prices of the goods. Choice D is incorrect because a cluster does not accurately describe the set of indifference curves on a graph.

A Set of Indifference Curves on a Graph Is Called