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Chapter 1: Q 5RQ. (page 9)

How can you tell which indifference curves represent higher or lower levels of utility?

Short Answer

Expert verified

Higher IC gives higher satisfaction.

Step by step solution

01

Step 1. Meaning of indifference curve

Indifference curve shows a combination of two goods that gives a consumer equal satisfaction and utility.

02

Step 2. Reason

On a indifference map,a higher indifference curve represents those combinations which yield higher level of satisfaction tan combination on lower indifference curve.

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