1. What is an indifference curve? An indifference curve is a graphical representation that shows different combinations of two goods that provide a consumer with the same level of satisfaction or utility. 2. What does the slope of an indifference curve indicate? The slope of an indifference curve represents the rate at which a consumer is willing to substitute one good for another while maintaining constant satisfaction. 3. How do indifference curves reflect consumer preferences? Indifference curves depict different combinations of goods that yield equal satisfaction to the consumer, reflecting their preferences for various bundles. 4. What does it mean if two indifference curves do not intersect? If two indifference curves do not intersect, it implies that the consumer prefers the bundles on the higher curve as they provide greater utility. 5. Explain the concept of diminishing marginal rate of substitution (MRS). Diminis...
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