Except for perfect complements, an indifference curve has a ________ slope and becomes ________ moving to the right.
A) negative; flatter
B) negative; steeper
C) positive; flatter
D) positive; steeper

Question

Quizplus · Accepted Answer

Indifference curves have a negative slope because as we move to the right, we have to give up some of one good to get more of the other good, and therefore the consumer is indifferent between the different combinations of the two goods. As we move to the right, the curve becomes flatter because the marginal rate of substitution (the rate at which a consumer is willing to trade one good for the other) decreases as the consumer has more of one good and less of the other.

Except for Perfect Complements, an Indifference Curve Has a ________