An indifference curve typically:
A)slopes downward.
B)shows combinations of two goods that yield equal money income.
C)slopes upward.
D)is concave.

Question

Quizplus · Accepted Answer

An indifference curve typically slopes downward, meaning that as the quantity consumed of one good increases, the quantity consumed of the other good must decrease to keep the consumer equally satisfied. This is the basic characteristic of an indifference curve. Choice B is incorrect because indifference curves show combinations of two goods that yield equal utility, not equal money income. Choice C is incorrect because indifference curves do not slope upward. Choice D is incorrect because indifference curves can be concave, convex, or linear, depending on the individual's preferences.

An Indifference Curve Typically