An indifference curve shows
A) the relationship between prices and a household's budget.
B) all possible prices and preferences for a good.
C) combinations of goods among which a household is indifferent.
D) budget lines among which a consumer is indifferent.

Question

Quizplus · Accepted Answer

An indifference curve shows combinations of goods among which a household is indifferent, meaning they derive the same level of satisfaction or utility from each combination. Indifference curves do not show prices or budget constraints directly, which eliminates options A and D. Option B is also incorrect because it implies the indifference curve shows all possible prices and preferences, when in reality it only shows indifference between goods in a particular preference set.

An Indifference Curve Shows