An indifference curve is a line that shows
A) what the consumer can afford to buy.
B) how the quantity demanded of a good changes as its price changes.
C) combinations of goods among which the consumer is indifferent.
D) combinations of goods that have the same marginal rate of substitution.
E) combinations of goods that are affordable.

Question

Quizplus · Accepted Answer

An indifference curve shows the different combinations of goods that provide the same level of satisfaction or utility to the consumer. These combinations are those among which the consumer is indifferent, meaning the consumer has no preference for one over the other. Indifference curves do not show what the consumer can afford to buy (A), how the quantity demanded changes with price (B), or the same marginal rate of substitution necessarily (D). They may or may not be affordable (E), depending on the consumer's budget constraint.

An Indifference Curve Is a Line That Shows