Question

Why do indifference curves slope down?

Short answer

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.