indifference curve and budget lines Flashcards
1
Q
a curve depicting alternative combinations of goods that yield equal satisfaction
A
indifference curve
2
Q
Diminishing slope of curve means the willingness to substitute diminishes as you more down the curve
A
..
3
Q
higher indifference curves represent higher levels of utility or preference
A
…
4
Q
successive indifference curves where each entail a different level of utility
A
level of utility increases as move away from origin
5
Q
each curve represents a different level of utility
A
..
6
Q
every point on line lies on an indifference curve
A
budget line
7
Q
change in product price shifts ___
A
budget line
8
Q
point inside the budget line means consumers would obtain more goods for the income
A
budget line
9
Q
Utility maximized where budget line is tangent to the indefference curve
A
budget line
