A curve that shows all of the alternative consumption bundles that the consumer likes equally well is called
A) A budget constraint
B) An indifference curve
C) An individual demand curve
D) A consumption bundle curve

Question

Quizplus · Accepted Answer

An indifference curve shows all the combinations of two goods that the consumer considers equally desirable, or ones that generate the same level of satisfaction/happiness for the consumer. A budget constraint is the limit to which a consumer can spend given their income and the prices of the goods they want to purchase. An individual demand curve shows the relationship between the price of a good and the quantity of the good a consumer is willing and able to purchase. A consumption bundle curve is not a concept in economics.

A Curve That Shows All of the Alternative Consumption Bundles