5 Questions
What does an indifference curve represent?
Different combinations of two commodities yielding the same level of satisfaction
What does the slope of an indifference curve indicate?
The rate at which the consumer is willing to substitute one good for the other
What happens as the consumer moves along an indifference curve from point A to point B?
The consumer has less of Y but more of X, maintaining the same level of satisfaction
What does an indifference schedule enable us to understand?
The combinations of X and Y that yield the same level of satisfaction
What is the analogy used to describe an indifference curve?
A contour line on a map indicating the same level of height from the sea level
Test your knowledge of indifference schedules and curves in business economics with this quiz. Explore the concept of deriving equal satisfaction from different combinations of commodities and understand how indifference schedules relate to indifference curves.
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