An indifference curve shows

bundles of two goods that cost the sameCorrect answerYour answerbundles of two goods an economy can produceCorrect answerYour answerhow demand changes with priceCorrect answerYour answerbundles of two goods that give the consumer the same satisfactionCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

The consumer is indifferent among all bundles on one curve: each is as good as any other.
Bundles costing the same lie on a budget line; what can be produced lies on a PPC.

Concept: Meaning of an indifference curve
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsIndifference curves and MRS

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Ten questions from Budget Line & Optimal Choice, at your own pace.

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An indifference curve shows

Explanation