Practicing Success
All the points on indifference Curve show the level of satisfaction. Choose the correct option : |
Low Level of satisfaction Same level of satisfaction High level of satisfaction Lowest level of satisfaction |
Same level of satisfaction |
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. |