ECONOMICS
CONSUMERS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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down ward sloping convex
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downward sloping concave
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downward sloping straight line
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upward sloping convex
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Detailed explanation-1: -Indifference curves can be straight lines if a slope is constant, resulting in an indifference curve represented by a downward-sloping straight line. If the marginal rate of substitution is increasing, the indifference curve will be concave to the origin.
Detailed explanation-2: -The only way an individual can increase consumption in one good without gaining utility is to consume another good and generate the same amount of utility. Therefore, the slope is downwards sloping.
Detailed explanation-3: -Indifference curve slopes downward due to diminishing marginal utility as the consumer decreases the consumption of one good, the consumption of another good must increase to keep the utility constant.
Detailed explanation-4: -An indifference curve concave to the origin would represent increasing marginal rate of substitution.
Detailed explanation-5: -Typically, indifference curves are shown convex to the origin, and no two indifference curves ever intersect.