The farther an indifference curve lies from the origin ________.
A)the greater the level of individual income
B)the lower its utility
C)the lower the level of individual income
D)the higher its utility

Question

Quizplus · Accepted Answer

The farther an indifference curve lies from the origin, the higher its utility. This is because a higher level of utility can be achieved by consuming more of both goods, which is reflected in a shift of the indifference curve away from the origin. The level of individual income may or may not play a role in determining the shape and position of indifference curves.

The Farther an Indifference Curve Lies from the Origin ________