If an individual's total utility from consuming two goods decreases, then there must be
A) a downward rotation of the individual's indifference curve.
B) an inward rotation of the individual's indifference curve.
C) an outward shift of the individual's indifference curve.
D) an inward shift of the individual's indifference curve.

Question

Quizplus · Accepted Answer

If the total utility from consuming two goods decreases, it means that the individual is worse off than before. This implies that the indifference curve representing the individual's preferences for the two goods must move inward or shift to the left. Therefore, the correct answer is option D, an inward shift of the individual's indifference curve.

If an Individual's Total Utility from Consuming Two Goods Decreases