That indifference curves are downward sloping
A) is not true.
B) follows from the fact that more is preferred to less.
C) follows from the property that the consumer likes diversity in his or her consumption bundle.
D) follows from the property that consumption and leisure are normal goods.
E) follows from the fact that there is a direct relationship between consumption and leisure bundles.

Question

Quizplus · Accepted Answer

The downward sloping shape of indifference curves is a fundamental assumption of consumer theory. This is because it reflects the fact that more of any good (holding all else constant) is preferred to less. As a consumer obtains more of a good, the additional units of that good provide less and less additional satisfaction, so the consumer must be compensated with more of another good in order to remain indifferent between consumption bundles. This leads to the downward sloping shape of indifference curves.

That Indifference Curves Are Downward Sloping