As a Consumer Moves Along an Indifference Curve

question 20

Multiple Choice

As a consumer moves along an indifference curve

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

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Definitions:

Desert Island

An uninhabited or deserted island, often depicted in literature and movies as a remote, isolated place.

Competitive Equilibrium

A market state where supply equals demand, and no economic agents have the incentive to change their behavior.

Utility Function

A mathematical representation of how a consumer ranks different bundles of goods according to the level of satisfaction or happiness they provide.

Endowed

Provided with a quality, ability, or asset; often used in the context of endowed chairs in academia or endowed grants/funds.