Question

When a consumer moves upward along an indifference curve, his total utility _________.

• A. first increases and then decreases
• B. first decreases and then increases
• C. remains constant
• D. increases

Answer 1

Answer: (C)

remains constant

The indifference curve shows all the possible combination of goods with the same level of utility which the consumer can purchase with his current income, Therefore, moving up or down the indifference curve does not change the utility the consumer derives from the bundle. It only affects the combination of goods purchased by the consumer.