Question

An indifference schedule may be defined as _________________________.

• A. a schedule of various combination of two commodities that will be equally accepted by the consumer
• B. a schedule of various combination of more than two commodities that will be equally accepted by the consumer
• C. a schedule of single combination of two commodities that will be equally accepted by the consumer
• D. all of the above

Answer 1

Answer: (A)

a schedule of various combination of two commodities that will be equally accepted by the consumer

The indifference curve is a list of combination of two goods which would give the consumer the same amount of utility. Every point on the indifference curve would be a point where the consumer is indifferent. The indifference curve is downward sloping because for the consumer to purchase of more of some good, it has to give up some of another good.