All the points lying on an indifference curve provide the consumer with the _______ level of satisfaction.
Which of the following options suits best in the above blank?
Answer & explanation
Correct answer: option 1
The correct answer is Option 1: Same
- An indifference curve represents all combinations of two goods that provide the consumer with the same level of satisfaction or utility.
- This means that the consumer does not prefer one combination over another on the same curve because all points on the curve yield equal satisfaction.
- If one combination provided more satisfaction than another, it would be on a higher indifference curve, not the same one.
All the points such as A, B, C and D lying on the indifference curve provides the consumer with the same level of satisfaction.
