An Indifference Curve Shows

question 27

Multiple Choice

An indifference curve shows

• A)the maximum combinations of two products that a consumer can afford to buy, given prices and the consumer's income.
• B)the quantities of two products a consumer is willing to buy at different income levels.
• C)all combinations of two products from which the consumer derives a specific level of total utility.
• D)combinations of two products that yield the same marginal utilities.

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Definitions:

Indifference Curve

A graph representing a series of combinations of two goods between which a consumer is indifferent, showing the trade-offs a consumer is willing to make between two products.

Total Utility

The complete fulfillment obtained from the consumption of a specified quantity of goods or services.

Indifference Curves

Indifference curves are graphs showing different combinations of goods between which a consumer is indifferent, suggesting equal levels of utility or satisfaction.

Utility

A measure of satisfaction, pleasure, or usefulness obtained from consuming goods and services.