Which of the following statements about the indifference curve is true? A. A finite number of indifference curves can be drawn. B. The higher an indifference curve is for a consumer, the greater that consumer's marginal level of satisfaction. C. A higher indifference curve represents the possibility of higher rates of consumption if income increases. O D. A lower indifference curve is preferred to a higher one because consumers prefer lower prices.
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An indifference curve depicts the combination of two goods that the consumer consumes and derives the same level of utility.
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An infinite number of indifference curves can be drawn. A group of the indifference curve is called an indifference map.
Hence, option (A) is not true.
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The marginal level of satisfaction is also known as marginal utility. It measures the additional level of utility consumers get by consuming an additional unit of one good, keeping the consumption of another good constant. It is not necessarily true that a higher indifference curve has a greater level of marginal utility.
Hence, option (B) is not true.
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A lower indifference curve is never preferred to a higher one. A rational consumer always prefers a higher indifference curve because a higher indifference curve implies higher utility.
Hence, option (D) is not true.
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