BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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1.demand curve
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2.indefference curve
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3.supply curve
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4.none of the above
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Detailed explanation-1: -An indifference curve shows a combination of two goods in various quantities that provides equal satisfaction (utility) to an individual.
Detailed explanation-2: -Every point on the indifference curve shows that an individual or a consumer is indifferent between the two products as it gives him the same kind of utility.
Detailed explanation-3: -An indifference curve would show all the possible combination of two goods which give the consumer the same level of satisfaction.
Detailed explanation-4: -The basic tool of Hicks-Allen ordinal analysis of demand is the indifference curve that represents all those combinations of goods that give same satisfaction to the consumer. In other words, all combinations of the goods lying on a consumer’s indifference curve are equally preferred by him.