Question

On the indifference curve, what does movement from one point to another show?

विकल्प

• Changing total utility

• Changing income

• Substituting one good for another at the same level of utility

• Increasing price of goods

Answer 1

Substituting one good for another at the same level of utility

Explanation:

Moving along an indifference curve shows how a consumer swaps one good for another, with equal satisfaction (MRS effect).