A purpose of indifference-curve analysis is to:
A)derive a theory of producer behavior.
B)prove the law of diminishing utility.
C)derive a theory of consumer behavior without requiring absolute utility measurement.
D)prove that the demand curve for all commodities is negatively sloped.
E)describe market phenomena.

Question

Quizplus · Accepted Answer

The purpose of indifference-curve analysis is to derive a theory of consumer behavior without requiring absolute utility measurement. It provides a framework for analyzing how consumers make choices between different goods given their preferences and budget constraints.

A Purpose of Indifference-Curve Analysis Is To