Indifference Curve Analysis

question 70

Multiple Choice

Indifference curve analysis

• A) presumes, as does utility analysis, that satisfaction is numerically measurable.
• B) presumes, unlike utility analysis, that satisfaction is numerically measurable.
• C) presumes only that the consumer can say one combination of two goods yields more or less utility than some other combination.
• D) is in conflict with the idea of a downsloping demand curve.

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Definitions:

iPads

A line of tablet computers designed and marketed by Apple Inc., which run the iOS and iPadOS mobile operating systems.

Laptop

A portable personal computer with a screen and keyboard, designed for mobile use and small enough to rest on the user's lap.

Income Effect

Adjustments in the income of an individual or the broader economy and the consequent effects on how much of a good or service is desired.

Law of Diminishing

refers to the principle that as one consumes more of a good, the marginal utility (or satisfaction) obtained from consuming an additional unit decreases.