An Indifference Curve Shows All

question 285

Multiple Choice

An indifference curve shows all

• A)possible equilibrium positions on an indifference map.
• B)equilibrium combinations of two products that are obtainable with a given money income.
• C)combinations of two products yielding the same total utility to a consumer.
• D)possible combinations of two products that a consumer can purchase, given her income and the prices of the products.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level in a given period.

Normal Good

A normal good is one whose demand increases as consumer income rises and decreases when consumer income falls, holding other factors constant.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to normal goods.

Complements

Complements are goods or services that are used together, so that the consumption or use of one increases the demand for the other.