Question

An indifference curve is best described as a series of points which show ______.

Options

• Combinations of two commodities which give the consumer same satisfaction

• Combinations of two goods, such that cost of each combination is equal to money income of the consumer

• Combinations of the two goods which a consumer can afford, given his income & prices in the market

• None of these

Answer 1

An indifference curve is best described as a series of points which show Combinations of two commodities which give the consumer same satisfaction.

Explanation:

Every point on an indifference curve represents a combination of two goods giving the same satisfaction. Equal-cost bundles are represented by a budget line, and affordable bundles by the budget set.