Question

The ratio of Exchange between two goods on an indifference Curve analysis is shown by the

A) MRS. B) Price line

C) indifference Curve

D) Income Consumption Curve​

Answer 1

a is the right answer.....mmm

Answer 2

Answer:

The answer of the following question is option B.

The ratio of Exchange between two goods on an indifference Curve analysis is shown by the Price line.

Explanation:

• Combinations of two goods that yield equal levels of utility are shown on an indifference curve.

• The analysis of indifference curve is done on price line.

• The problem of utility maximization with equations, can extend the analysis to any number of goods and services.

• Price line, the term define the price of purchased and selling that helps to analyse the indifference curve.

The image shown below gives the analysis of indifference curve by price line.