An indifference curve slopes downward because
A)it shows that people are only happy when they increase consumption of all goods.
B)it shows that when a person gives up some of good X they must increase their consumption of good Y to remain indifferent.
C)it shows that when a person gives up some of good X they can afford to increase their consumption of good Y.
D)it is a demand curve without prices.
E)the quantity demanded increases as the price falls.

Question

Quizplus · Accepted Answer

An indifference curve represents all combinations of two goods that give a person the same level of satisfaction, or utility. As a person gives up some of good X (moves leftward along the curve), they must increase their consumption of good Y (moves upward along the curve) to remain indifferent. Thus, the slope of the curve is negative.

An Indifference Curve Slopes Downward Because