Which of the Following Best Describes an Indifference Curve

Theyre subjective in the sense that they will look different from person to person. Which of the following statements best describes how individuals maximize their utility given a constraint.

6 2 The Indifference Curve Principles Of Microeconomics

If a consumer decides to have one more unit of a commodity say apples quantity of another good say oranges must fall so that the total satisfaction utility remains same.

. Consumer preference for normal goods increases. The four properties of indifference curves are. Consumer preference for inferior goods decreases.

B ranks from most preferred to least preferred. Since all the combinations give the same amount of satisfaction the consumer prefers them equally. The consumer finds all combinations on a curve equally preferred.

Selects jobs primarily based upon the risk of injury rather than the wage. It shows that more of one commodity implies less of the other so that the total satisfaction at any point on the IC remains constant. Which description below describes an indifference curve.

I Indifference curves are negatively-sloped or downward-sloping. An indifference curve represents bundles of goods that a consumer A views as equally desirable. C refers to any other bundle of goods.

Which of the following best describes an indifference curve. Shows all combinations of goods that provide the consumer with the same satisfaction or the same utility. Question 4 O Mark this question Which of the following best describes an indifference curve.

A All points of a curve with equal cost b All points of a curve with equal utility c The demand of each commodity d The marginal utility of one of the commodities e All points in the weakly preferred set An indifference curve is collection of all bundles with equal utility. Indifference curves are subjective. Higher indifference curves represent less of both goods and the budget constraint shows the consumption bundles that the consumer can buy by spending part of her available income given the prices of the goods.

D All of the above. A graph that shows how the price of substitute goods causes a consumer to prefer one bundle of goods over another. An indifference curve represents a series of combinations between two different economic goods between which an individual would be theoretically indifferent regardless of.

The combinations of goods that give a consumer the same level of satisfaction Which of the following best describes the change in the quantity demanded of Good X and Good Y when the preferences of the consumer shift in favor of Good Y. Using the graph shown determine which statement is FALSE. The indifference curve shifts to the right.

A this can be shown when the budget constraint is tangent to the highest indifference curve b this can be shown when the budget constraint is tangent to the highest indifference curve well above the contraint c none of these possible answers make sense d this can be. Here is an example to understand the indifference curve better. Under the hedonic pricing model of job risk a flatter indifference curve indicates that an individual.

Thus while indifference curves have the same general shapethey slope down and the slope is steeper on the left and flatter on the rightthe specific shape of indifference curves can be different for every person. An indifference curve is a contour line where utility remains constant across all points on the line. Hence the name indifference curve.

A graph that shows the change in demand for goods and services when income changes. Individuality of Indifference Curves. The principle that More is better results in indifference curves A sloping down.

A INDIFFERENCE CURVE ALWAYS SLOPES DOWNWARDS FROM LEFT TO RIGHT. The consumer should be on the highest indifference curve possible given her budget constraint. 5 Which of the following best describes an indifference curve.

Places a high value on the risk of injury C. Optimal Choice 2 Which of the following best describes an indifference curve. An indifference curve has a negative slope ie.

The isoprofit curve is relatively flat at all levels of risk 17. An indifference curve slopes downwards from left to right. An indifference curve is a curve that represents all the combinations of goods that give the same satisfaction to the consumer.

An indifference curve is best described as a curve that shows. A graph that shows the change in demand for a good when the price of its complementary good changes A graph that shows how the price of substitute goods causes a consumer to prefer one bundle of goods over another A graph that shows the change in demand for goods and services when. A curve on a consumer choice graph that indicates different combinations of goods that are equally appealing to the customer M2.

A graph that shows how the price of substitute goods causes a consumer to prefer one bundle of goods over another O A graph that shows the change in demand for goods and services when income changes O A graph that shows different bundles of goods for which. Change in Income 18 Select the cross-price elasticity amount below that is categorized as a substitute. The principle characteristics of indifference curves IC are as follows.

An indifference curve is a graph showing combination of two goods that give the consumer equal satisfaction and utility. You might look at the indifference curve in the example above and feel differently about the amount of chocolate you want relative to packs of gummy bears. Equal preference same utility level.

A graph that shows different bundles of goods for which a consumer has equal preference. The indifference curve shifts downward and to the left. Indifference curves represent individual tastes and preferences.

It slopes downward from left to right. Each point on an indifference curve indicates that a consumer is indifferent between the two and all points give him the same utility. 1 indifference curves can never cross 2 the farther out an indifference curve lies the higher the utility it indicates 3 indifference curves always slope downwards and 4 indifference curves are convex.

Views as equally desirable. Therefore all bundles in an indifference curve have the same utility level To each indifference curve we have one utility level 41 Utility Functions. Each person determines his or her own preferences and utility.

Places a low value on the risk of injury B. Indifference curves are heuristic devices used in modern microeconomics to show consumer preferences and budget. Because each bundle of goods yields the same level of utility the consumer is indifferent about which combination is actually consumed.

An indifference curve links equally preferred bundles. With respect to two commodities an indifference curve is a graph that shows which combinations of the two commodities leave the consumer equally well off or equally satisfiedhence indifferentin owning any combination on the curve.

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