Which One of the Following Statements Is False

question 78

Multiple Choice

Which one of the following statements is false?

• A)Indifference curves are negatively sloped.
• B)A preference map consists of a series of indifference curves.
• C)Indifference curves are bowed out from the origin.
• D)The marginal rate of substitution is the magnitude of the slope of an indifference curve.
• E)The marginal rate of substitution increases as a consumer moves up along an indifference curve for ordinary goods.

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Definitions:

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where market supply and demand balance each other.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Demand

The amount of a product or service that buyers are prepared and capable of buying at different price levels over a specific time frame.

Stadium Capacity

The maximum number of spectators that a stadium can accommodate during an event, determined by its physical size and safety regulations.