Asked by Samantha Rojas on May 08, 2024
Verified
An indifference map implies that
A) money income is constant, but the prices of the two products vary directly with the quantities purchased.
B) the two products under consideration are perfectly substitutable for one another.
C) a consumer is better off to be at some point high on a given curve as opposed to a point low on the same curve.
D) curves farther from the origin yield higher levels of total utility.
Indifference Map
A graphical representation of different combinations of two goods or bundles among which a consumer is indifferent.
Indifference Curve
A graph representing combinations of goods or services among which a consumer is indifferent, showing preference levels and the trade-offs between different bundles.
- Understand the purpose and implications of indifference maps and curves in consumer behavior.
Verified Answer
KL
Kristy LopezMay 12, 2024
Final Answer :
D
Explanation :
Indifference curves represent combinations of goods that provide the same level of satisfaction to the consumer. Curves that are farther from the origin represent combinations of goods that yield higher levels of total utility, indicating that the consumer prefers these combinations over those on curves closer to the origin.
Learning Objectives
- Understand the purpose and implications of indifference maps and curves in consumer behavior.
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