Economics 9708 · AS & A Level · Indifference curves and budget lines

Indifference curves and budget lines — practice question

(a)[12]

Economists refer to indifference analysis when analysing consumer choice. Does this theory of consumer behaviour suggest that a consumer is always indifferent when deciding between two products?

(b)[13]

Discuss whether a demand curve and budget lines are similar in the way they show what happens when the price of a good falls.

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