Iso-utility curve is another name for ________ curve.
Show answer & explanation
Correct answer: D
Explanation
Correct Answer:
Indifference
Explanation:
In economics, an Iso-utility Curve is another name for an Indifference Curve. It represents different combinations of goods that provide the same level of satisfaction (utility) to a consumer. Since every point on the curve gives equal utility, the consumer is indifferent among those combinations.
Key Points:
An Iso-utility Curve and an Indifference Curve represent the same concept.
It shows combinations of goods that provide equal satisfaction.
The level of utility remains constant at every point on the curve.
A consumer is indifferent between the combinations shown on the curve.
Additional Facts:
An Indifference Curve generally slopes downward from left to right.
A higher Indifference Curve represents a higher level of satisfaction.
It is an important concept in consumer behavior theory.
Important Questions:
Q1: What does an Indifference Curve represent?
Ans: Different combinations of goods that provide the same level of satisfaction.
Q2: What remains constant at every point on an Indifference Curve?
Ans: The level of utility (satisfaction).
Q3: What does a higher Indifference Curve indicate?
Ans: A higher level of satisfaction or utility.