An indifference curve shows
A)combinations of goods that provide the same utility
B)combinations of goods that can be purchased with the same budget
C)combinations of goods that yield the same level of profit
D)the relationship between price and utility
E)the relationship between utility and profits

Question

Quizplus · Accepted Answer

An indifference curve shows different combinations of goods that provide the consumer with the same level of satisfaction or utility. It represents the consumer's preferences between different combinations of two goods, assuming constant utility. The consumer is indifferent between any combination of goods on a given indifference curve, as they provide the same level of satisfaction.

An Indifference Curve Shows