Which of the following statements is true?
A)Higher indifference curves represent less utility than lower curves.
B)Higher indifference curves represent more utility than lower curves.
C)Higher indifference curves represent the same utility as lower curves.
D)Higher indifference curves may represent either more or less utility than lower curves.

Question

Quizplus · Accepted Answer

According to the basic assumptions of consumer theory, higher indifference curves represent higher levels of utility or satisfaction. This is because consumers generally prefer more of a good to less of it, and so a bundle of goods that falls on a higher indifference curve must provide more utility than one that falls on a lower curve. Thus, option B is the correct choice.

Which of the Following Statements Is True