Question

Lower indifference curve implies _______.

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

Answer 1

The correct option is 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 satisfactions. Lower the indifference curve would mean the consumer can purchase less with his current income. This means he would get a lower level of satisfactions.