Question

The farther the Indifference Curve is from the origin, then ______.

Options

• Higher is the satisfaction level

• Lower is the satisfaction level

• Same satisfaction level will be obtained

• Nothing can be said about satisfaction

Answer 1

The farther the Indifference Curve is from the origin, then higher is the satisfaction level.

Explanation:

With monotonic preferences, a curve farther from the origin represents a larger bundle and higher satisfaction. Each individual curve represents a distinct satisfaction level.