If two consumption points are not on the same indifference curve, then one point is _______.
A) a substitute for the other point
B) preferred to the other
C) unaffordable and the other is affordable
D) more expensive than the other

Question

Quizplus · Accepted Answer

Indifference curves represent combinations of goods that provide the same level of utility to the consumer. If two consumption points are not on the same indifference curve, it means they do not provide the same level of utility. Therefore, one point must be preferred to the other, indicating a higher level of utility.

If Two Consumption Points Are Not on the Same Indifference