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Budget Line & Optimal Choice · Question 43 of 67

Question 43

MediumOriginal question

An indifference curve slopes downward because

Options for question 43

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. With monotonic preferences, more of good 1 alone would raise satisfaction.

  2. To stay on the same curve, the consumer must give up some of good 2: a downward slope.

Concept
Downward slope of an indifference curve
Typical time
70 s
Your time
—
The rule this testsIndifference curves and MRS
Practise this chapter →

Ten questions from Budget Line & Optimal Choice, at your own pace.

Practise this chapter →

Ten questions from Budget Line & Optimal Choice, at your own pace.