As a consumer moves along an indifference curve
A) his level of utility will vary as the combinations of goods varies.
B) the combination of goods and the consumer's income level will remain constant.
C) the combination of goods will vary but the level of utility remains constant.
D) the combination of goods will vary, but the level of money income remains constant.
E) the combination of goods he prefers will remain constant, but the level of satisfaction will vary.

Question

Quizplus · Accepted Answer

An indifference curve represents a combination of two goods that yield the same level of satisfaction, or utility, for the consumer. Moving along the curve means changing the combination of goods, but still yielding the same level of utility. Therefore, the combination of goods will vary but the level of utility remains constant. The other options are incorrect because the income level and money income may change, and the level of satisfaction or utility may vary depending on the combinations of goods.

As a Consumer Moves Along an Indifference Curve