Open In App

Warning: foreach() argument must be of type array|object, bool given in /var/www/html/web/app/themes/studypress-core-theme/template-parts/header/mobile-offcanvas.php on line 20

Chapter 1: Q 2RQ. (page 9)

Why do indifference curves slope down?

Short Answer

Expert verified

It slopes downward due to diminishing marginal utility.

Step by step solution

Step 1. Meaning of Indifference curve

Indifference curve shows a combination of two goods that gives a consumer equal satisfaction and utility.

Step 2. Reason

Indifference curve slopes downward due to diminishing marginal utility as the consumer decreases the consumption of one good,the consumption of another good must increase to keep the utility constant.

Unlock Step-by-Step Solutions & Ace Your Exams!

Full Textbook Solutions
Get detailed explanations and key concepts
Unlimited Al creation
Al flashcards, explanations, exams and more...
Ads-free access
To over 500 millions flashcards
Money-back guarantee
We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

What is the relationship between product

differentiation and monopolistic competition?

What is a monopsony?

Macroeconomics is an aggregate of what happens at the microeconomic level. Would it be possible for what happens at the macro level to differ from how economic agents would react to some stimulus at the micro-level? Hint: Think about the behavior of crowds

A bank has deposits of \(400. It holds reserves of \)50. It has purchased government bonds worth \(70. It has made loans of \)500. Set up a T-account balance sheet for the bank, with assets and liabilities, and calculate the bank’s net worth.

What is globalization? How do you think it might have affected the economy over the past decade?

See all solutions