Question

Higher indifference curve imply ________.

• A. lower level of satisfaction
• B. higher level satisfaction
• C. higher cost of production
• D. lower cost of production

Answer 1

The correct option is B higher level satisfaction

Lower the indifference curve would mean the consumer can purchase less with his current income. This means he would get a lower level of satisfaction.
Higher the indifference curve would mean the consumer can purchase more with his current income. This means he would get a higher level of satisfaction.