An indifference curve that has a higher level of utility will be of an indifference curve with a lower level of utility. Indifference curves for preferences that fit the four main assumptions will be at higher levels of X. Select one: a. Right; Steeper

An indifference curve that has a higher level of utility will be of an indifference curve with a lower level of utility. Indifference curves for preferences that fit the four main assumptions will be at higher levels of X. Select one: a. Right; Steeper

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter5: Consumer Choice: Individual And Market Demand

Section5.A: Appendix Analyzing Consumer Choice Graphically: Indifference Curve Analysis

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Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

Question

An indifference curve that has a higher level of utility will be
of an indifference curve with a lower level of utility.
Indifference curves for preferences that fit the four main
assumptions will be at higher levels of X.
Select one:
a. Right; Steeper
b. Left; Steeper
c. Right; Flatter
d. Left; Flatter

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