An indifference curve slopes downward to the right because
A)more goods are preferable to less
B)goods are substitutes for each other
C)the consumer has a limited income
D)the opportunity costs of goods differ
E)of the budget constraint

Question

Quizplus · Accepted Answer

An indifference curve slopes downward to the right because goods are substitutes for each other. This means that the consumer is willing to trade one good for another at a certain rate, while keeping their level of satisfaction constant. Therefore, if the price of one good increases or their income decreases, the consumer will purchase less of that good and more of a substitute good in order to maintain their level of satisfaction.

An Indifference Curve Slopes Downward to the Right Because