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

Indifference curves and budget lines — practice question

If a consumer is deciding whether to buy two products, the satisfaction derived from consuming different combinations of the two products may be shown using an indifference curve. Which statement about this indifference curve diagram is correct?

  • AThe range of indifference curves shows the combination of products a consumer can purchase with a given income.
  • BIf an indifference curve is a downward-sloping straight line, the principle of diminishing marginal utility must be operating.
  • CIndifference curves never cross, because this means that a consumer would be indifferent between combinations of two goods, even when one combination provides more of each good.
  • DThe gap between indifference curves is always constant.

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