Why do convex indifference curves have a negative slope?
A)Because consumers take market prices as given
B)Because consumers face a budget constraint
C)Because to keep utility constant, a consumer must get more of one good if she is to give up some of the other
D)Because scarcity implies that it is not possible to consume more of one good without giving up some of the other

Question

Quizplus · Accepted Answer

Convex indifference curves indicate diminishing marginal utility, meaning that to keep utility constant, the consumer must give up more of one good to get a smaller amount of the other. Therefore, the slope is negative. This has nothing to do with market prices (A), budget constraints (B), or scarcity (D).

Why Do Convex Indifference Curves Have a Negative Slope