Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
indifference curve indifference map income effect substitution effect | A curve that shows the combinations of two goods from which the consumer is indifferent (receives the same level of satisfaction). When higher prices essentially reduce consumer income, the quantity demanded for normal goods falls. When the price of one good rises, consumers will substitute other goods for that good; therefore, the quantity demanded for the higher- An infinite set of indifference curves in which each curve represents a different level of utility or satisfaction. |