Question

_______ is a curve which represents all those combinations of goods which give same level of satisfaction to the consumer.

• A. Demand curve
• B. Indifference curve
• C. Supply curve
• D. Production possibility curve

Answer 1

The correct option is B Indifference curve

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 form the previous one but the combination of the goods on the new indifference curve will also give the same level of satisfaction.

The demand curve represents the demand for a specific good and is negatively sloped. The supply curve represents the supply for a specific good and is positively sloped. The PPC is related to productivity and factor inputs and not consumer satisfaction.