Higher indifference curves are preferred to lower ones as long as which circumstance applies
A)The marginal rate of substitution is diminishing.
B)The consumer's income remains constant.
C)Commodities in the bundle are "goods."
D)The budget constraint does not shift.

Question

Quizplus · Accepted Answer

Higher indifference curves represent higher levels of utility, and consumers prefer more of "goods" rather than less, assuming the commodities are desirable.

Higher Indifference Curves Are Preferred to Lower Ones as Long