Question

Indifference curve shows ________.

• A. various combination of two commodities that gives a level of consumer satisfaction
• B. various combinations of two commodities that a consumer can buy
• C. various combinations of two goods that give same value for money
• D. various combinations of two goods that give same level of consumer surplus

Answer 1

The correct option is A various combination of two commodities that gives a level of consumer satisfaction

An indifference curve would show all the possible combination of two goods which give the consumer the same level of satisfaction. When the indifference curve expands or contracts the level of satisfaction the new indifference curve would be different from the previous one but the combination of the goods on the new indifference curve will also give the same level of satisfaction.