An indifference curve is a line showing all of the consumption bundles that:
A)an individual can purchase with a given income.
B)yield the same total utility for an individual.
C)yield the same marginal utility.
D)have the same marginal rate of substitution.

Question

Quizplus · Accepted Answer

An indifference curve represents all the consumption bundles that yield the same level of total utility for an individual. The slope of an indifference curve represents the individual's marginal rate of substitution, which is the rate at which the individual is willing to trade one good for another while maintaining the same level of satisfaction. Therefore, option B is the correct answer.

An Indifference Curve Is a Line Showing All of the Consumption