Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

All the points on indifference Curve show the level of satisfaction. Choose the correct option :

Options:

Low Level of satisfaction

Same level of satisfaction

 High level of satisfaction

Lowest level of satisfaction

Correct Answer:

Same level of satisfaction

Explanation:

The correct answer is option (2) : Same level of satisfaction

All the points on an indifference curve represent bundles of two goods that provide the consumer with an equal level of satisfaction. This means that the consumer is indifferent between consuming any combination of goods on that curve. As you move away from the origin on the indifference curve, the level of satisfaction does not change, but the consumer is getting more of one good and less of the other.