In the indifference curve/budget line diagram,consumers reach higher indifference curves when
A) their budget decreases.
B) the price of only the good measured along the y-axis increases.
C) the price of only the good measured along the x-axis increases.
D) the price of either good falls.
E) the price of either good rises.

Question

Quizplus · Accepted Answer

Consumers reach higher indifference curves, which represent higher levels of utility or satisfaction, when their purchasing power increases. This can happen if the price of either good falls, allowing them to buy more of one or both goods within their budget.

In the Indifference Curve/budget Line Diagram,consumers Reach Higher Indifference Curves