Indifference curves consistent with one good being an economic "neuter" are:
A)convex.
B)straight lines with a slope of -1.
C)straight lines with a slope of 0.
D)L-shaped.

Question

Quizplus · Accepted Answer

If one good is an economic "neuter", then the consumer's utility or satisfaction is not affected by changes in the quantity of that good, and the indifference curves will be straight lines with a slope of 0. This is because the consumer is indifferent between different quantities of that good and only cares about the quantity of the other good. Therefore, option C is the correct answer.

Indifference Curves Consistent with One Good Being an Economic "Neuter