[amp_mcq option1=”Same satisfaction” option2=”Greater satisfaction” option3=”Maximum satisfaction” option4=”Decreasing expenditure” correct=”option1″]<\/p>\n
The correct answer is: A. Same satisfaction.<\/p>\n
An indifference curve is a graph that shows all the combinations of two goods that provide the same level of satisfaction to a consumer. The slope of an indifference curve is always negative, which means that as a consumer consumes more of one good, they must consume less of the other good in order to maintain the same level of satisfaction. This is because goods are usually considered to be substitutes, meaning that they can be used to satisfy the same need. For example, if a consumer is indifferent between eating a hamburger and a pizza, then they will be willing to trade off some hamburgers for some pizzas without experiencing a change in their level of satisfaction.<\/p>\n
The options B, C, and D are all incorrect. Option B is incorrect because more of one commodity and less of another result in a decrease in satisfaction, not an increase. Option C is incorrect because there is no such thing as maximum satisfaction. Option D is incorrect because expenditure is not related to satisfaction.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Same satisfaction” option2=”Greater satisfaction” option3=”Maximum satisfaction” option4=”Decreasing expenditure” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-50339","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n