If you care not only about your own income level but also about your relatives' income level, with increasing concern for them as they get poorer, then your indifference curves (defined over your income level and that of your relatives)
A)Will be negatively sloped, and concave from above
B)Will be positively sloped, and concave from the origin
C)Will be negatively sloped and linear
D)Can not be specified until more information is provided

Question

Quizplus · Accepted Answer

Indifference curves are negatively sloped because as one's own income increases, the amount of their relative's income needed to compensate for a decrease in their own income decreases. They are also concave from above because the marginal utility of additional income decreases as income increases, meaning that the increase in utility from an additional unit of income decreases as one's income level increases.

If You Care Not Only About Your Own Income Level