Asked by
Vanessa Gillespie
on Oct 25, 2024
Verified
A curve that represents all combinations of market baskets that provide the same level of utility to a consumer is called:
A) a budget line.
B) an isoquant.
C) an indifference curve.
D) a demand curve.
Indifference Curve
A graph representing combinations of goods among which a consumer is indifferent, reflecting their preferences and utility.
Utility
In economics, the satisfaction or benefit derived by consuming a product or service; a measure of preferences over some set of goods and services.
Budget Line
A graphical representation of all possible combinations of two goods that an individual can afford with a given income and prices.
- Achieve insight into the concept of what consumers prefer and how these preferences are illustrated in models of economics.
- Probe into how indifference curves embody consumer preferences and how their outline manifests entrenched beliefs about marginal rates of substitution.
Verified Answer
CS
Learning Objectives
- Achieve insight into the concept of what consumers prefer and how these preferences are illustrated in models of economics.
- Probe into how indifference curves embody consumer preferences and how their outline manifests entrenched beliefs about marginal rates of substitution.