Question 18 As long as a consumer remains on the same indifference curve, her pr
ID: 1227749 • Letter: Q
Question
Question 18
As long as a consumer remains on the same indifference curve,
her preferences will not affect the marginal rate of substitution.
she is unable to decide which bundle of goods to choose.
she is indifferent to all points that lie on any other indifference curve.
she is indifferent among the points on that curve.
a.her preferences will not affect the marginal rate of substitution.
b.she is unable to decide which bundle of goods to choose.
c.she is indifferent to all points that lie on any other indifference curve.
d.she is indifferent among the points on that curve.
Explanation / Answer
d
In microeconomic theory, an indifference curve is a graph showing different bundles of goods between which a consumer isindifferent. That is, at each point on the curve, the consumer has no preference for one bundle over another. One can equivalently refer to each point on the indifference curve as rendering the same level of utility (satisfaction) for the consumer. In other words an indifference curve is the locus of various points showing different combinations of two goods providing equal utility to the consumer. Utility is then a device to represent preferences rather than something from which preferences come.
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