Question 48
MediumOriginal questionRead the two statements and choose the correct option.
I. Each indifference curve shows a different level of satisfaction.
II. All bundles on one indifference curve cost the same.
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
I is true: the map has one curve per level of satisfaction.
II is false: equal cost describes a budget line; bundles on one indifference curve can cost very different amounts.
- Concept
- What an indifference curve shows
- Typical timeTypical
- 70 s
- Your timeYours
- —
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