Read the following passage and answer, question.

A consumer is a rational individual who knows, what is good and bad for him/her. So he always tries to achieve the best to get maximum satisfaction. Thus, the consumer chooses the set of bundles as per his preference which is best for him. The consumer always prefers to move to a point on the highest possible indifference curve given on the budget set. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market.

All the points on Indifference curve represent :

Bundles which are considered indifferent by the consumer

The answer is Option 2: Bundles which are considered indifferent by the consumer.

All points on an indifference curve represent bundles of goods that the consumer considers to be equally satisfying. This means that the consumer is indifferent to which bundle they choose, as they will provide the same level of satisfaction.

The other options are incorrect:

• The same price: The price of goods is not directly related to the indifference curve. The indifference curve is determined by the consumer's preferences, not by the prices of the goods.

• Straight line: Indifference curves are typically curved, not straight lines. This is because the consumer's preferences may change as they consume more or less of a particular good.

• Bundles which are considered same by the consumer: The bundles on an indifference curve are not considered the same by the consumer. They are simply considered to be equally satisfying. This means that the consumer is not indifferent to the actual content of the bundles, but rather to the level of satisfaction they provide.