Which of the following pairs is correctly matched?

The correct answer is Option (3) → Utility function — A way of representing a consumer’s preferences

A consumer’s preferences can be shown by an indifference map, and also by a utility function.

Option (1) Market demand — Demand of one consumer at different prices — Incorrect. Market demand is the total demand of all consumers at each price.

Option (2) Indifference curve — Bundles that cost the consumer the same amount — Incorrect. An indifference curve joins bundles that give equal satisfaction; bundles of equal cost lie on a budget line.

Option (3) Utility function — A way of representing a consumer’s preferences — Correct. Preferences can be represented by a utility function.

Option (4) Demand function — Relation between the demand for a good and the consumer’s income — Incorrect. The demand function relates demand to the good’s own price, other things unchanged.