What is constant along an indifference curve? (1) Level of Utility
(2) Level of Output
(3) Level of Price
Only 1
The correct answer is option 2. An indifference curve represents combinations of two goods that give a consumer the same level of satisfaction or utility. Thus, utility remains constant along the curve.
Similar Questions
Indifference curve theory states that:
- An indifference curve measures ____________ level of satisfaction derived from different combinations of commodity X and Y.
Important Questions from Indifference curve analysis
In the case of two production-inputs. which one of the following is not a property of Isoquants (the production indifference curves)?
Indifference curve theory states that:
- Which one of the following is not the basic property of indifference curves ?
- An indifference curve measures ____________ level of satisfaction derived from different combinations of commodity X and Y.
For a smooth indifference curve between two desirable goods, which assumption explains convexity to the origin and a declining absolute slope as the consumer moves rightward?
(A) Diminishing marginal utility alone
(B) Diminishing marginal rate of substitution between the goods
(C) Diminishing marginal rate of technical substitution between inputs
(D) Merely using ordinal measurement of utility
(E) Diminishing marginal utility of money alone
