Which of the Following Best Describes an Indifference Curve

O The highest level of satisfaction that a consumer can attain within certain limits O The curve on a consumer choice graph that indicates how much money the consumer can spend O A curve on a consumer choice graph that indicates different. 1 they are downward sloping from left to right.

Indifference Curve Definition Indifference Map Mrs Examples Etc

All of the above.

. 5 Which of the following best describes an indifference curve. Here is an example to understand the indifference curve better. An indifference curve represents the different bundles of goods and services that provide a buyer with the same level of utility.

O It shows the desired level of consumption for the consumer. Indifference curves have a roughly similar shape in two ways. The supply curve is the same as the marginal cost curve above the average variable cost curve.

Hence the name indifference curve. B ranks from most preferred to least preferred. A particular indifference curve reflects a constant level of utility so the consumer is indifferent among all consumption combinations along a given curve.

The consumer should be on the highest indifference curve possible given her budget constraint. Indifference curves are heuristic devices used in modern microeconomics to show consumer preferences and budget. Which of the following statements best describes a consumers indifference curve.

2 they are convex with respect to the origin. A graph that shows how the price of substitute goods causes a consumer to prefer one bundle of goods over another O A graph that shows the change in demand for goods and services when income changes O A graph that shows different bundles of goods for which. A graph that shows the change in demand for goods and services when income changes.

With respect to two commodities an indifference curve is a graph that shows which combinations of the two commodities leave the consumer equally well off or equally satisfiedhence indifferentin owning any combination on the curve. Which of the following economic principles is Juan exhibiting. An indifference curve is a curve that represents all the combinations of goods that give the same satisfaction to the consumer.

This can be illustrated by having two indifference curves as given in Figure 2. The principle that More is better results in indifference curves A sloping down. 5 Which of the following best describes an indifference curve.

Question 7 O Mark this question Which description below describes an indifference curve. A graph that shows different bundles of goods for which a consumer has equal preference. An indifference curve is a graphical representation of a combined products that gives similar kind of satisfaction to a consumer thereby making them indifferentEvery point on the indifference curve shows that an individual or a consumer is indifferent between the two products as it gives him the same kind of utility.

A Quantity demanded equals quantity supplied b Marginal revenue equals marginal cost c Social benefit equals social cost d Ratio of marginal utilities equals ratio of prices e Income equals utility 22. Combinations are equally attractive. A graph that shows how the price of substitute goods causes a consumer to prefer one bundle of goods over another.

C refers to any other bundle of goods. This means that the indifference curve at a higher level from the axes shows greater satisfaction than an indifference curve at a lower level. If total utility is to remain constant an increase in the consumption of one good must be offset by a decrease in the consumption of the other good so each indifference curve slopes downward to.

Question 4 O Mark this question Which of the following best describes an indifference curve. A graph that shows the change in demand for goods and services when income changes A graph that shows different bundles of goods for which a consumer has equal preference. An indifference curve represents bundles of goods that a consumer A views as equally desirable.

Microeconomics - Unit 2. All of the following shift. Juan is able to list out the pros and cons of each possible bundle based on his personal preferences to help him decide which is ultimately the best bundle.

Which of the following best describes the optimum for the consumer in the indifference curve-budget constraint diagram. Which of the following best describes an indifference curve. Views as equally desirable.

Higher indifference curves represent less of both goods and the budget constraint shows the consumption bundles that the consumer can buy by spending part of her available income given the prices of the goods. The indifference curve shifts to the right. A graph that shows the change in demand for a good when the price of its complementary good changes A graph that shows how the price.

An indifference curve is a contour line where utility remains constant across all points on the line. View the full answer. Which of the following best describes the optimum for the consumer in the indifference curve-budget constraint diagram.

1 indifference curves can never cross 2 the farther out an indifference curve lies the higher the utility it indicates 3 indifference curves always slope downwards and 4 indifference curves are convex. Which of the following best describes an indifference curve. Each person determines his or her own preferences and utility.

A Quantity demanded equals quantity suppliedb Marginal revenue equals marginal cost c Social benefit equals social cost d Ratio of marginal utilities equals ratio of prices e Income equals utility. It shows the limits to a consumers set of affordable consumption choices. D All of the above.

Are contour lines of a utility function. Which description below describes an indifference curve. A All points of a curve with equal cost b All points of a curve with equal utility c The demand of each commodity d The marginal utility of one of the commodities e All points in the weakly preferred set An indifference curve is collection of all bundles with equal utility.

Compared to any indifference curve an indifference curve on the right represents bundles that consist of more of either or both goods and no less of either good than the indifference curve on the left. In other words they are steeper on the left and flatter on the right. The quantity consumers would like to buy in an.

The four properties of indifference curves are. It shows all combinations of goods among which the consumer is indifferent. An indifferent curve is drawn from the indifference schedule.

Since all the combinations give the same amount of satisfaction the consumer prefers them equally. It is the same as the consumers demand curve. It shows all combinations of goods among which the consumer is indifferent.

In the indifference curve IC1 at point P the consumer is having OM quantity of Bananas and ON quantity of Biscuits. An indifference curve with respect to two commodities is a graph showing those combinations of the two commodities that leave the consumer equally well off or equally satisfiedhence.

Solved Question 4 O Mark This Question Which Of The Chegg Com