Higher indifference curves are preferred to lower ones as long as the
A)marginal rate of substitution is diminishing.
B)products in the bundle are "bads."
C)products in the bundle are "goods."
D)budget constraint does not shift.

Question

Quizplus · Accepted Answer

Higher indifference curves represent higher levels of utility, which are preferred when the products in the bundle are "goods" because they provide more satisfaction.

Higher Indifference Curves Are Preferred to Lower Ones as Long