Question 25
Theory of Consumer BehaviourA point along a consumer's indifference curve shows
- A.the different commodities he can consume
- B.a combination of all commodities he is willing to buy
- C.a combination of two commodities from which he derives the same satisfaction
- D.the quantities of commodities demanded by him
- E.the difference between quantity supplied and quantity demanded
Show the answer and explanation
Answer: C (a combination of two commodities from which he derives the same satisfaction)
Explanation
Each point on an indifference curve is a combination of two goods giving the consumer the same satisfaction as every other point on it.