An indifference curve illustrates the
A)prices facing a consumer as she chooses how much of good X and good Y to consume.
B)income facing a consumer as she chooses how much of good X and good Y to consume.
C)trade-offs facing a consumer as she chooses how much of good X and good Y to consume.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

An indifference curve shows the different combinations of two goods that give a consumer the same level of utility, or satisfaction. It represents the trade-offs that a consumer is willing to make between the two goods, as she decides how much of each to consume, based on her preferences. Prices and income are not directly illustrated by the indifference curve, although they may affect a consumer's choices along the curve.

An Indifference Curve Illustrates the