CA Foundation Exam  >  CA Foundation Questions  >  A higher indifference curve showsa)A higher l... Start Learning for Free
A higher indifference curve shows 
  • a)
    A higher level of satisfaction 
  • b)
    A higher level of production 
  • c)
    A higher level of income 
  • d)
    None of the above. 
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
A higher indifference curve showsa)A higher level of satisfactionb)A h...
A higher indifference curve shows
A higher level of satisfaction
An indifference curve represents a combination of goods or services that a consumer considers equally desirable or satisfying. A higher indifference curve indicates that the consumer has reached a higher level of satisfaction with their chosen combination of goods or services. This can be explained through the following points:
  • Preference: Indifference curves are used to illustrate a consumer's preferences. A higher indifference curve implies that the consumer prefers the combination of goods or services on that curve over those on a lower curve.
  • Utility: Utility is a measure of the satisfaction a consumer derives from consuming goods or services. A higher indifference curve corresponds to a higher level of utility, indicating that the consumer is more satisfied with the goods or services on that curve.
  • Non-satiation: The principle of non-satiation assumes that consumers always prefer more of a good or service to less, assuming all else remains constant. Therefore, a higher indifference curve represents a higher level of overall satisfaction, as the consumer has more of one or both goods or services.
  • Marginal rate of substitution: The slope of an indifference curve represents the marginal rate of substitution (MRS) between two goods or services. A higher indifference curve suggests that the consumer is willing to give up less of one good or service to obtain more of the other, indicating a higher level of satisfaction.
It is important to note that a higher indifference curve does not necessarily imply a higher level of production or income, as these factors may be unrelated to the consumer's preferences and satisfaction levels.
View all questions of this test
Most Upvoted Answer
A higher indifference curve showsa)A higher level of satisfactionb)A h...
Because more we consume one good , their will be sacrifice of other good . As we consume more and more we are satisfying ourselves more
Free Test
Community Answer
A higher indifference curve showsa)A higher level of satisfactionb)A h...
Dissatisfaction.
b)The more likely the customer is to recommend the product.
c)The higher the customer loyalty.
d)The greater the likelihood of repeat purchases.
Explore Courses for CA Foundation exam
A higher indifference curve showsa)A higher level of satisfactionb)A higher level of productionc)A higher level of incomed)None of the above.Correct answer is option 'A'. Can you explain this answer?
Question Description
A higher indifference curve showsa)A higher level of satisfactionb)A higher level of productionc)A higher level of incomed)None of the above.Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A higher indifference curve showsa)A higher level of satisfactionb)A higher level of productionc)A higher level of incomed)None of the above.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A higher indifference curve showsa)A higher level of satisfactionb)A higher level of productionc)A higher level of incomed)None of the above.Correct answer is option 'A'. Can you explain this answer?.
Solutions for A higher indifference curve showsa)A higher level of satisfactionb)A higher level of productionc)A higher level of incomed)None of the above.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of A higher indifference curve showsa)A higher level of satisfactionb)A higher level of productionc)A higher level of incomed)None of the above.Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of A higher indifference curve showsa)A higher level of satisfactionb)A higher level of productionc)A higher level of incomed)None of the above.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for A higher indifference curve showsa)A higher level of satisfactionb)A higher level of productionc)A higher level of incomed)None of the above.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of A higher indifference curve showsa)A higher level of satisfactionb)A higher level of productionc)A higher level of incomed)None of the above.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice A higher indifference curve showsa)A higher level of satisfactionb)A higher level of productionc)A higher level of incomed)None of the above.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev