An indifference curve shows
A)various combinations of two goods that give the consumer the same amount of utility.
B)the quantities of a good that give the consumer maximum utility when compared directly to price.
C)the relationship between the price and quantity of a good that a consumer is able to purchase.
D)the relationship between the quantity of a good and maximum utility.
E)the relationship between total and marginal utility.

Question

Quizplus · Accepted Answer

An indifference curve is a graph showing various combinations of two goods that provide the consumer with equal levels of satisfaction or utility. The curve represents all the possible combinations of the two goods that yield the same level of utility to the consumer. The consumer is indifferent between any two combinations of goods that lie on the same indifference curve.

An Indifference Curve Shows