That indifference curves are downward sloping
A)follows from the property that consumption and leisure are normal goods.
B)follows from the fact that there is a direct relationship between consumption and leisure bundles.
C)follows from the property that the consumer likes diversity in his or her consumption bundle.
D)follows from the fact that more is preferred to less.
E)is not true.

Question

Quizplus · Accepted Answer

Indifference curves are downward sloping because they represent combinations of goods (or leisure and consumption in this context) that provide the same level of utility to the consumer. The principle that "more is preferred to less" implies that to maintain the same level of utility, if one good is increased, the other must decrease, hence the downward slope.

That Indifference Curves Are Downward Sloping