An indifference curve plotted for two different goods on the axes
A)shows the different combinations of two goods that the same income can purchase.
B)shows all combinations of the two goods that give the same level of utility.
C)changes its slope as the relative prices of the two goods change.
D)shifts when real income changes.
E)shows the combinations of the two goods that will just use up a consumer's income.

Question

Quizplus · Accepted Answer

An indifference curve shows all combinations of two goods that give the same level of utility. The curve is not affected by changes in income or relative prices of the two goods.

An Indifference Curve Plotted for Two Different Goods on the Axes