If the combination of goods consumed at point C is preferred to combination D, then
A) point C is on a lower indifference curve.
B) point C is on the same indifference curve but at a point where the vertical axis value is greater than point D's vertical axis value.
C) point C is on the same indifference curve but at a point where the horizontal axis value is greater than point D's horizontal axis value.
D) point C is on a higher indifference curve.

Question

Quizplus · Accepted Answer

In indifference curve analysis, if a combination of goods (point C) is preferred to another combination (point D), it means that point C provides a higher level of utility. This is represented by point C being on a higher indifference curve than point D. Indifference curves farther from the origin represent higher levels of utility.

If the Combination of Goods Consumed at Point C Is