Indifference curves are linear and budget lines are convex to the origin.

Indifference Curves

Graphical representations used in microeconomics to show combinations of two goods that provide equal satisfaction and utility to a consumer.

Budget Lines

A graphical representation of all possible combinations of two goods which a consumer can purchase at given prices and within the constraints of his/her income.

Determine and apply knowledge of indifference curves in relation to consumer satisfaction levels.

Verified Answer

KARANVEER SINGHJun 10, 2024

Final Answer :

False

Explanation :

Indifference curves are typically convex to the origin, indicating diminishing marginal utility. Budget lines, on the other hand, are typically linear.

Learning Objectives

Determine and apply knowledge of indifference curves in relation to consumer satisfaction levels.

Indifference curves are linear and budget lines are convex to the origin.

Definitions

Learning Objectives

Learning Objectives

Related questions