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

Indifference curves are downward sloping because they represent combinations of goods that provide the same level of satisfaction to the consumer. As the quantity of one good increases, the quantity of the other good must decrease in order to maintain the same level of satisfaction. This obeying of the basic assumption of rationality, namely that more is preferred to less, leads to the downward sloping shape of indifference curves.

That Indifference Curves Are Downward Sloping