Asked by court Adams on May 06, 2024
Verified
An indifference curve shows
A) the maximum combinations of two products that a consumer can afford to buy, given prices and the consumer's income.
B) the quantities of two products a consumer is willing to buy at different income levels.
C) all combinations of two products from which the consumer derives a specific level of total utility.
D) combinations of two products that yield the same marginal utilities.
Indifference Curve
A graph representing combinations of goods among which a consumer is indifferent, reflecting preferences.
Combinations
In mathematics and statistics, combinations refer to the selection of items from a group, where the order of selection does not matter.
Total Utility
The overall satisfaction or pleasure a person derives from consuming a certain quantity of goods or services.
- Understand the concept and graphical representation of indifference curves.
Verified Answer
EP
EnzoTzy PagalMay 11, 2024
Final Answer :
C
Explanation :
Indifference curves represent all combinations of two products that provide a consumer with the same level of satisfaction or utility, indicating the consumer's preferences regardless of income or product prices.
Learning Objectives
- Understand the concept and graphical representation of indifference curves.