Commerce Exam > Commerce Questions > An indifference curve indicates, ceteris pari...
Start Learning for Free
An indifference curve indicates, ceteris paribus?
- a)Combinations of goods which yield to a producer different levels of satisfaction
- b)Combinations of goods which yield to a consumer equal degrees of satisfaction
- c)Combinations of goods which yield to a consumer different levels of satisfaction
- d)A consumer’s preference for any two goods
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
An indifference curve indicates, ceteris paribus?a)Combinations of goo...
In economics, an indifference curve connects points on a graph representing different quantities of two goods, points between which a consumer is indifferent. ... In other words, an indifference curve is the locus of various points showing different combinations of two goods providing equal utility to the consumer.
Most Upvoted Answer
An indifference curve indicates, ceteris paribus?a)Combinations of goo...
The ic curve indicates the maximum amount of satis
faction you get while
Free Test
FREE
| Start Free Test |
Community Answer
An indifference curve indicates, ceteris paribus?a)Combinations of goo...
Understanding Indifference Curves
Indifference curves are a fundamental concept in consumer theory, representing the different combinations of two goods that yield the same level of satisfaction to a consumer. This concept is crucial for understanding consumer preferences and choice.
Key Features of Indifference Curves:
- Equal Satisfaction: Each point along an indifference curve indicates a combination of two goods that provides the consumer with the same level of utility or satisfaction. Therefore, the consumer is indifferent between these combinations.
- Downward Sloping: Indifference curves typically slope downwards from left to right. This illustrates the trade-off between the two goods; as the consumer consumes more of one good, they must consume less of the other to maintain the same level of satisfaction.
- Non-Intersecting: Indifference curves do not intersect each other. If they did, it would imply contradictions in the consumer's preferences, as the same combination could not yield different levels of satisfaction.
Why Option B is Correct:
The correct answer is option 'B' because it accurately encapsulates the essence of indifference curves. They represent combinations of goods that yield equal degrees of satisfaction to the consumer, emphasizing the concept of indifference in consumer choice.
In contrast, options A, C, and D misrepresent the purpose of indifference curves by suggesting varying levels of satisfaction or focusing solely on preferences without the critical aspect of equality in utility.
Hence, understanding indifference curves is vital for analyzing consumer behavior and the principles of demand in economic theory.
Indifference curves are a fundamental concept in consumer theory, representing the different combinations of two goods that yield the same level of satisfaction to a consumer. This concept is crucial for understanding consumer preferences and choice.
Key Features of Indifference Curves:
- Equal Satisfaction: Each point along an indifference curve indicates a combination of two goods that provides the consumer with the same level of utility or satisfaction. Therefore, the consumer is indifferent between these combinations.
- Downward Sloping: Indifference curves typically slope downwards from left to right. This illustrates the trade-off between the two goods; as the consumer consumes more of one good, they must consume less of the other to maintain the same level of satisfaction.
- Non-Intersecting: Indifference curves do not intersect each other. If they did, it would imply contradictions in the consumer's preferences, as the same combination could not yield different levels of satisfaction.
Why Option B is Correct:
The correct answer is option 'B' because it accurately encapsulates the essence of indifference curves. They represent combinations of goods that yield equal degrees of satisfaction to the consumer, emphasizing the concept of indifference in consumer choice.
In contrast, options A, C, and D misrepresent the purpose of indifference curves by suggesting varying levels of satisfaction or focusing solely on preferences without the critical aspect of equality in utility.
Hence, understanding indifference curves is vital for analyzing consumer behavior and the principles of demand in economic theory.
|
Explore Courses for Commerce exam
|
|
Top Courses for CommerceView all
Question Description
An indifference curve indicates, ceteris paribus?a)Combinations of goods which yield to a producer different levels of satisfactionb)Combinations of goods which yield to a consumer equal degrees of satisfactionc)Combinations of goods which yield to a consumer different levels of satisfactiond)A consumer’s preference for any two goodsCorrect answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about An indifference curve indicates, ceteris paribus?a)Combinations of goods which yield to a producer different levels of satisfactionb)Combinations of goods which yield to a consumer equal degrees of satisfactionc)Combinations of goods which yield to a consumer different levels of satisfactiond)A consumer’s preference for any two goodsCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An indifference curve indicates, ceteris paribus?a)Combinations of goods which yield to a producer different levels of satisfactionb)Combinations of goods which yield to a consumer equal degrees of satisfactionc)Combinations of goods which yield to a consumer different levels of satisfactiond)A consumer’s preference for any two goodsCorrect answer is option 'B'. Can you explain this answer?.
An indifference curve indicates, ceteris paribus?a)Combinations of goods which yield to a producer different levels of satisfactionb)Combinations of goods which yield to a consumer equal degrees of satisfactionc)Combinations of goods which yield to a consumer different levels of satisfactiond)A consumer’s preference for any two goodsCorrect answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about An indifference curve indicates, ceteris paribus?a)Combinations of goods which yield to a producer different levels of satisfactionb)Combinations of goods which yield to a consumer equal degrees of satisfactionc)Combinations of goods which yield to a consumer different levels of satisfactiond)A consumer’s preference for any two goodsCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An indifference curve indicates, ceteris paribus?a)Combinations of goods which yield to a producer different levels of satisfactionb)Combinations of goods which yield to a consumer equal degrees of satisfactionc)Combinations of goods which yield to a consumer different levels of satisfactiond)A consumer’s preference for any two goodsCorrect answer is option 'B'. Can you explain this answer?.
Solutions for An indifference curve indicates, ceteris paribus?a)Combinations of goods which yield to a producer different levels of satisfactionb)Combinations of goods which yield to a consumer equal degrees of satisfactionc)Combinations of goods which yield to a consumer different levels of satisfactiond)A consumer’s preference for any two goodsCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of An indifference curve indicates, ceteris paribus?a)Combinations of goods which yield to a producer different levels of satisfactionb)Combinations of goods which yield to a consumer equal degrees of satisfactionc)Combinations of goods which yield to a consumer different levels of satisfactiond)A consumer’s preference for any two goodsCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
An indifference curve indicates, ceteris paribus?a)Combinations of goods which yield to a producer different levels of satisfactionb)Combinations of goods which yield to a consumer equal degrees of satisfactionc)Combinations of goods which yield to a consumer different levels of satisfactiond)A consumer’s preference for any two goodsCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for An indifference curve indicates, ceteris paribus?a)Combinations of goods which yield to a producer different levels of satisfactionb)Combinations of goods which yield to a consumer equal degrees of satisfactionc)Combinations of goods which yield to a consumer different levels of satisfactiond)A consumer’s preference for any two goodsCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of An indifference curve indicates, ceteris paribus?a)Combinations of goods which yield to a producer different levels of satisfactionb)Combinations of goods which yield to a consumer equal degrees of satisfactionc)Combinations of goods which yield to a consumer different levels of satisfactiond)A consumer’s preference for any two goodsCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice An indifference curve indicates, ceteris paribus?a)Combinations of goods which yield to a producer different levels of satisfactionb)Combinations of goods which yield to a consumer equal degrees of satisfactionc)Combinations of goods which yield to a consumer different levels of satisfactiond)A consumer’s preference for any two goodsCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup