As a Consumer Moves Along an Indifference Curve

question 30

Multiple Choice

As a consumer moves along an indifference curve

• A) his level of utility will vary as the combinations of goods varies.
• B) the combination of goods and the consumer's income level will remain constant.
• C) the combination of goods will vary but the level of utility remains constant.
• D) the combination of goods will vary, but the level of money income remains constant.
• E) the combination of goods he prefers will remain constant, but the level of satisfaction will vary.

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Definitions:

Total Expenditures

The sum total of all spending or expenses incurred by an individual, business, or government.

Demand Curve

A graphical representation that shows the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good.

Demand Curve

A diagram that illustrates the connection between a product's cost and the amount of it consumers want to buy at various prices.