An indifference curve shows the baskets of goods which
A) have the same marginal values.
B) the consumer can purchase,given his income and the prices he faces.
C) are the most preferred of the baskets within his budget.
D) are all equally desirable,providing the consumer with some fixed level of satisfaction.

Question

Quizplus · Accepted Answer

An indifference curve represents the combination of two goods that gives the consumer the same level of satisfaction or utility. Therefore, all the points on the same indifference curve are equally desirable to the consumer.

An Indifference Curve Shows the Baskets of Goods Which