If a consumer is always indifferent between an additional one grapefruit or an additional two oranges, then when oranges are on the horizontal axis the indifference curves:
A) will be straight lines with a slope of -1/2.
B) will be straight lines with a slope of -1.
C) will be straight lines with a slope of +1/2.
D) will be right angles whose corners occur on a ray from the origin with a slope of +2.
E) none of the above

Question

Quizplus · Accepted Answer

The consumer is willing to trade 2 oranges for 1 grapefruit, indicating a constant rate of substitution. This results in straight-line indifference curves with a slope of -1/2 when oranges are on the horizontal axis.

If a Consumer Is Always Indifferent Between an Additional One