ECONOMICS
CONSUMERS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a budget line.
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an isoquant.
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an indifference curve.
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a demand curve.
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Detailed explanation-1: -Indifference curves represent all combinations of market baskets that provide the same level of satisfaction to a person.
Detailed explanation-2: -A curve that represents all combinations of market baskets that provide the same level of utility to a consumer is called: a budget line.
Detailed explanation-3: -An indifference curve shows a combination of two goods in various quantities that provides equal satisfaction (utility) to an individual.
Detailed explanation-4: -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-5: -The diagram shows an Indifference curve (IC). Any combination lying on this curve gives the same level of consumer satisfaction. Another name for it is Iso-Utility Curve.