Indifference curves have which of the following properties?
A) Higher indifference curves represent greater total satisfaction.
B) Indifference curves are negatively sloped.
C) Indifference curves are convex from the origin.
D) All of the above.

Question

Quizplus · Accepted Answer

Higher indifference curves represent greater total satisfaction because they represent bundles of goods that provide more utility than lower indifference curves. Indifference curves are negatively sloped because as the quantity of one good increases, the consumer is willing to give up less of the other good to maintain the same level of satisfaction. Indifference curves are convex from the origin because the marginal rate of substitution (MRS) decreases as more of one good is consumed, indicating that the consumer is willing to give up relatively less of the other good.

Indifference Curves Have Which of the Following Properties