GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Same satisfaction
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Greater satisfaction
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Maximum satisfaction
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Decreasing expenditure
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Detailed explanation-1: -Higher indifference curves indicate higher utility levels. Hence if more of one commodity and less of another, the level of satisfaction remains the same. Explanation: Because one good increases while the other decreases, the Indifference Curve always slopes downwards to the right.
Detailed explanation-2: -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-3: -The indifference curve is downward-sloping. The slope of the indifference curve is convex. Curves plotted higher and farther to the right correspond with higher levels of utility. Various indifference curves can never cross or overlap.