alleryAn indifference curve represents all combinations of two goods that give the consumer:
Athe lowest level of satisfaction
Ban increasing level of satisfaction
Cthe maximum possible satisfaction
Dthe same level of satisfaction
Answer & Solution
Correct answer: D. the same level of satisfaction
1. An indifference curve is the locus of combinations giving equal satisfaction.
2. The consumer is indifferent among all points on it, which is why it is called an iso-utility curve.
3. Satisfaction is equal along one curve, not maximum, increasing, or lowest, so those options are wrong.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 2 Unit II "Theory of Consumer Behaviour", p.12_
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