Question

An underlying assumption in development of indifference curves is that consumers

a. prefer less to more

b. have tastes that change along a given indifference curve

c. can rank alternative consumption bundles in terms of utility

d. none of the above

Answer 1

The answer is C

An underlying assumption in development of indifference curves is that consumers can rank alternative consumption bundles in terms of utility.

Indifference curve : Indifference curve is a curve on a graph (in which axis represent quantities of two commodities) linking those combinations of both quantities which the consumer regards as of the same value. The more preferred bundles will be assigned the higher level of utility as compared to that of less preferred bundles.