Under standard assumptions,which of the following is not a property of indifference curves?
A) They are downward sloping and convex.
B) They fill the plane and never cross.
C) Their slope is equal,in magnitude,to the relative price of the goods.
D) Baskets on indifference curves further away from the origin provide more satisfaction than those which are closer to the origin.

Question

Quizplus · Accepted Answer

The slope of an indifference curve is equal to the marginal rate of substitution (MRS) between two goods, not necessarily equal in magnitude to the relative price of the goods. The relative price is a market concept, while the MRS is a personal or subjective measure of willingness to trade one good for another.

Under Standard Assumptions,which of the Following Is Not a Property