Refer to the information provided in Figure 6.12 below to answer the question that follows. Figure 6.12
-Refer to Figure 6.12. If Arthur moves from indifference curve 2 to indifference curve 1, then Arthurʹs
A) marginal utility decreases.
B) total utility decreases.
C) total income increases.
D) prices of the goods decrease.

Question

Refer to the information provided in Figure 6.12 below to answer the question that follows.  Figure 6.12
-Refer to Figure 6.12. If Arthur moves from indifference curve 2 to indifference curve 1, then Arthurʹs
A) marginal utility decreases. 
B) total utility decreases. 
C) total income increases. 
D) prices of the goods decrease.

Quizplus · Accepted Answer

Moving to a lower indifference curve (from 2 to 1) indicates a decrease in total utility, as each curve represents a level of satisfaction, with higher curves indicating higher satisfaction or utility.

Refer to the Information Provided in Figure 6