An indifference curve in microeconomics shows the ________ level of satisfaction obtained from different combinations of commodity X and commodity Y chosen by a consumer.

Difficulty: Easy

Correct Answer: same

Explanation:


Introduction / Context:
This question again focuses on the basic meaning of an indifference curve, this time emphasising that it depicts different combinations of two goods, X and Y, that all yield the same level of satisfaction to the consumer. Understanding this idea is essential for later topics such as the marginal rate of substitution and the derivation of demand curves.


Given Data / Assumptions:
- We have two goods, labelled X and Y, consumed by a single consumer.
- The indifference curve joins points representing different bundles (quantities) of X and Y.
- The question asks which word correctly completes the statement about the level of satisfaction along a single indifference curve.
- The alternatives are same, higher, lower and minimum.


Concept / Approach:
On any one indifference curve, every point corresponds to a different combination of goods X and Y that the consumer regards as equally desirable. The key idea is that the total utility or satisfaction that the consumer derives from these different bundles is the same, even though the composition differs. Higher indifference curves represent higher satisfaction, and lower curves represent lower satisfaction, but points on a single curve all share the same level of satisfaction. Therefore the correct blank to fill is the word same.


Step-by-Step Solution:
Step 1: Recall that the consumer is indifferent between any two points on the same indifference curve, meaning each bundle gives equal satisfaction.Step 2: Consider option A, same. This matches the definition: a given indifference curve shows the same level of satisfaction for all combinations on it.Step 3: Consider option B, higher. A higher level of satisfaction is represented by an entirely different indifference curve that lies above and to the right, not by movement along the same curve.Step 4: Consider option C, lower. Similarly, lower satisfaction would be represented by another curve lying closer to the origin, not by points on the same curve.Step 5: Consider option D, minimum. The word minimum does not make sense here because the curve does not show just a minimum satisfaction; it shows a constant level which can be of any magnitude.


Verification / Alternative check:
You can verify using the typical diagram: imagine a map of indifference curves where each curve is labelled with a utility number, such as U1, U2 and U3, with U3 greater than U2 and U2 greater than U1. Every bundle on U2 gives the same utility U2. Moving along U2 changes the combination of X and Y but not the level of satisfaction. Only if you move to U3 or U1 does the level of satisfaction increase or decrease respectively.


Why Other Options Are Wrong:
Higher and lower are wrong because they refer to movements between different curves, not within a single one. Minimum is wrong because it suggests a specific extremum, which is not what an indifference curve represents. The curve simply indicates combinations with equal utility; it does not by itself identify any minimum or maximum satisfaction.


Common Pitfalls:
Some learners mistakenly think that moving to the right along the same indifference curve must increase satisfaction because the quantity of one good is increasing. They forget that the quantity of the other good is usually decreasing at the same time, leaving overall utility unchanged. The correct way to think is that each indifference curve is like a contour line on a map of utility; all points on that line are at the same height of satisfaction.


Final Answer:
An indifference curve shows the same level of satisfaction for different combinations of X and Y.

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