An indifference curve shows the
A)Maximum utility that can be achieved for a given consumer budget.
B)Maximum utility that can be achieved for different amounts of a good.
C)Combinations of goods giving equal utility to a consumer.
D)Optimal consumption combinations between two goods.

Question

Quizplus · Accepted Answer

An indifference curve shows the different combinations of goods that give the same level of utility to a consumer. Therefore, the consumer is indifferent between the different combinations of goods on the same indifference curve. This means that there is no one "optimal" consumption combination between two goods, as different combinations on the same indifference curve provide the same level of utility.

An Indifference Curve Shows the