Moving downward along an indifference curve causes a(n)
A) reduction in the total utility a consumer receives.
B) loss in the marginal utility of one good but an equal increase in the marginal utility of the other good.
C) increase in the marginal utility of both goods.
D) decrease in the price of one good and an increase in the price of the other good.

Question

Quizplus · Accepted Answer

Moving downward along an indifference curve implies that a consumer is substituting one good for another. This results in a loss in the marginal utility of the good being given up, but an equal gain in the marginal utility of the good being acquired, keeping the overall utility constant.

Moving Downward Along an Indifference Curve Causes A(n)