The combination of two commodities each yielding the same level of satisfaction to the consumer is

Analyze the question

The question asks for the term describing combinations of two commodities that give a consumer the same level of satisfaction.

Explain the concept

In consumer theory, an indifference curve shows all the combinations of two goods that give a consumer equal satisfaction (utility). The consumer is "indifferent" between any two points on the same curve because each point is equally satisfying.

Key properties of indifference curves:

• They slope downward from left to right.
• They are convex to the origin because of the diminishing marginal rate of substitution.
• They do not intersect.
• A curve further from the origin represents a higher level of satisfaction.

Check each option

• A. Consumer surplus: This is the difference between what a consumer is willing to pay and what they actually pay. It has nothing to do with equal satisfaction from combinations of goods.
• B. Indifference curve: This shows combinations of two goods that give the same satisfaction. ✔
• C. Budget constraint (written "budget constant" in the question): This shows the combinations of goods a consumer can afford given their income and prices. It is about affordability, not satisfaction.
• D. Goods of necessity: These are essential goods like food and water, which is a different concept entirely.

Answer

The correct option is B. Indifference curve.

Exam tip

Link the words: indifferent means "same satisfaction." Whenever JAMB says "same level of satisfaction" with two goods, think indifference curve. Also remember that the budget line is about what you can afford, while the indifference curve is about what you prefer.