Q. “A graph showing those combinations of the two commodities that leave the consumer equally well off or equally satisfied”- describes which of the following?

[A] Supply Curve

[B] Indifference Curve

[C] Production Possibility Frontier

[D] Demand Curve

Answer: B
Notes:
  • An indifference curve, with respect to two commodities, is a graph showing those combinations of the two commodities that leave the consumer equally well off or equally satisfied—hence indifferent—in having any combination on the curve.
  • Indifference curves are heuristic devices used in contemporary microeconomics to demonstrate consumer preference and the limitations of a budget.
  • Economists have adopted the principles of indifference curves in the study of welfare economics.

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