The consumer’s preferences over all the bundles can be shown by a family of indifference curves. This family is called the:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → indifference map
One indifference curve shows bundles of equal satisfaction. A whole family of such curves, one above another, shows all her preferences; it is called an indifference map.
NCERT (2026-27): “Indifference Map The consumer’s preferences over all the bundles can be represented by a family of indifference curves as shown in Figure 2.5. This is called an indifference map of the consumer. All points on an indifference curve represent bundles which are considered indifferent by the consumer. Monotonicity of preferences imply that between any two indifference curves, the bundles on the one which lies above are preferred to the bundles on the one which lies below.” |