Correct option is B
The correct answer is (B) satisfaction
- An indifference map is a set of multiple indifference curves that depict a consumer's preferences and levels of satisfaction with different combinations of goods.
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Key facts:
- Indifference Curve Definition: An indifference curve shows various combinations of two goods that provide the same level of satisfaction to a consumer. Each point on the curve represents equal utility.
- Slope of Indifference Curve: The curve slopes downward from left to right. This reflects that if the quantity of one good increases, the quantity of the other good must decrease to maintain the same level of satisfaction.
- Infinite Curves: An infinite number of indifference curves can be drawn, each representing a different level of satisfaction. Higher curves show higher satisfaction, while lower curves indicate lower satisfaction.
- Iso-Utility Curve: Another term for an indifference curve is the iso-utility curve, as it represents equal levels of utility.
- Isoquant Curve: In the context of a firm, an indifference curve is called an isoquant curve. It shows different combinations of inputs (like labor and capital) that produce the same level of output.