Question

An Indifference Curve represents all those combinations of two goods which give ______.

Options

• No satisfaction to the Consumer

• Lower satisfaction to the Consumer

• Higher satisfaction to the Consumer

• Equal satisfaction to the Consumer

Answer 1

An Indifference Curve represents all those combinations of two goods which give equal satisfaction to the Consumer.

Explanation:

Every combination on a particular indifference curve gives the consumer the same satisfaction. Different curves represent different levels of satisfaction.