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________shows various combinations of two products that give same amount of satisfaction:
  • a)
    ISO cost curve
  • b)
    Indifference curve
  • c)
    Marginal utility curve
  • d)
    ISO quant
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
________shows various combinations of two products that give same amou...
An indifference curve shows a combination of two goods that give a consumer equal satisfaction and utility thereby making the consumer indifferent. Along the curve, the consumer has no preference for either combination of goods because both goods provide the same level of utility.
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________shows various combinations of two products that give same amou...
Explanation:

Indifference curves show various combinations of two products that give the same amount of satisfaction. These curves are derived from the consumer's preferences and represent different levels of utility or satisfaction.

Key points about indifference curves:
- Indifference curves are downward sloping, which means that as the quantity of one product increases, the quantity of the other product must decrease in order to maintain the same level of satisfaction.
- Indifference curves cannot intersect each other, as this would violate the assumption of transitivity in consumer preferences.
- Indifference curves farther from the origin represent higher levels of satisfaction, while those closer to the origin represent lower levels of satisfaction.

Why is option 'B' the correct answer?

Option 'B' states that the correct answer is indifference curve. This is because indifference curves are specifically designed to represent different combinations of two products that give the same level of satisfaction.

Other options:
- ISO cost curve: An ISO cost curve represents different combinations of two products that can be purchased with the same amount of money. It does not necessarily represent the same level of satisfaction.
- Marginal utility curve: A marginal utility curve shows the additional satisfaction gained from consuming one more unit of a product. It does not directly represent combinations of two products giving the same amount of satisfaction.
- ISO quant: There is no such term as "ISO quant" in economics. Therefore, option 'D' is incorrect.

Conclusion:

In conclusion, the correct answer is option 'B', which states that indifference curves show various combinations of two products that give the same amount of satisfaction. Indifference curves are derived from consumer preferences and represent different levels of utility or satisfaction.
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________shows various combinations of two products that give same amount of satisfaction:a)ISO cost curveb)Indifference curvec)Marginal utility curved)ISO quantCorrect answer is option 'B'. Can you explain this answer?
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