alleryStart learning →Why are indifference curves normally downward sloping?
APrices always fall
BIncome is fixed
CGoods are substitutes
DMore is preferred
Answer & Solution
Correct answer: D. More is preferred
Because more of any good raises utility (non-satiation), gaining one good needs a loss of the other to stay on the same curve.
Keep practising Theory of Consumer Behaviour
Browse all Theory of Consumer Behaviour questions for CA Foundation, or explore more Business Economics topics.
Related questions
Which assumption makes curves smooth and convex to the origin?The law of demand holds even when the consumer is compensated for a price rise. This is thConsumer theory derives demand curves using budget lines and what?The indifference curve idea in biology models what?Reluctance to spend on luxuries beyond a set limit reflects what?An impulsive purchase is an example of what, per behavioural critics?Behavioural economists say consumers often use shortcuts called what?Traditionally, rational behaviour of a consumer means what?