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" not "goods."
C) products in the bundle are "goods" not "bads."
D) budget constraint does not shift.

Question

Quizplus · Accepted Answer

Higher indifference curves represent higher levels of utility or satisfaction, which are preferred when the products in the bundle are "goods" rather than "bads."

Higher Indifference Curves Are Preferred to Lower Ones as Long