In analyzing consumer behavior, economists often use indifference curves to represent a consumer's preferences. An indifference curve shows the different combinations of two goods that provide the same level of utility to the consumer. As one moves along an indifference curve, the level of utility , reflecting the consumer's willingness to trade off one good for another while maintaining the same level of overall satisfaction. A) Increases B) Decreases C) Remains constant D) Fluctuates unpredictably

In analyzing consumer behavior, economists often use indifference curves to represent a consumer's preferences. An indifference curve shows the different combinations of two goods that provide the same level of utility to the consumer. As one moves along an indifference curve, the level of utility , reflecting the consumer's willingness to trade off one good for another while maintaining the same level of overall satisfaction. A) Increases B) Decreases C) Remains constant D) Fluctuates unpredictably

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Problem 1QTC

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Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

Question

In analyzing consumer behavior,
economists often use indifference
curves to represent a consumer's
preferences. An indifference curve
shows the different combinations
of two goods that provide the
same level of utility to the
consumer. As one moves along
an indifference curve, the level of
utility
reflecting the
consumer's willingness to trade
off one good for another while
maintaining the same level of
overall satisfaction.
A) Increases
B) Decreases
C) Remains constant
D) Fluctuates unpredictably

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