Indifference curve analysis: Select one: a. presumes, as does utility analysis, that satisfaction is numerically measurable. b. presumes, unlike utility analysis, that satisfaction is numerically measurable. c. presumes only that the consumer can say one combination of two goods yields more or less utility than some other combination. d. is in conflict with the idea of a downsloping demand curve.

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Business

Underwood

19 July, 08:05

Indifference curve analysis: Select one: a. presumes, as does utility analysis, that satisfaction is numerically measurable. b. presumes, unlike utility analysis, that satisfaction is numerically measurable. c. presumes only that the consumer can say one combination of two goods yields more or less utility than some other combination. d. is in conflict with the idea of a downsloping demand curve.

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Answers (1)

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Melody Haynes · Answer 1

Answer: Option (c) is correct.

Explanation:

Indifference curve shows the different combination of two goods that a consumer can buy and all the combinations of two goods gives same level of utility.

Different indifference curves shows different combination of two goods with different utility.

One cannot measure the satisfaction level numerically but consumer can say one combination of two goods yields more or less utility than some other combination.

More than one indifference curve in the diagram is known as indifference map.