Which of the following is a property of indifference curves
A)Indifference curves cross to explain higher preferences.
B)Indifference curves have positive slopes.
C)Indifference curves are downward sloping and always linear.
D)Indifference curves are bowed in toward the origin.

Question

Quizplus · Accepted Answer

Indifference curves are typically bowed inward toward the origin because of the principle of diminishing marginal utility. As more of a good is consumed, the additional utility gained from each additional unit decreases, resulting in a decreasing marginal rate of substitution between goods. Therefore, indifference curves are not linear, and they do not cross. The slope of an indifference curve is negative, not positive.

Which of the Following Is a Property of Indifference Curves