The Negative Slope of an Indifference Curve Means That the Consumer

question 115

Multiple Choice

The negative slope of an indifference curve means that the consumer must give up quantity of one good as the quantity of another good increases in order for total utility to ____.

• A) remain constant.
• B) increase
• C) decrease
• D) normalize.

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Definitions:

Purchases

The acquisition of goods or services in exchange for monetary payment in the course of business operations.

Outstanding Shares

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Corporation

A legal entity owned by shareholders, with the characteristic of limited liability, and capable of owning assets, suing or being sued.

Charter

A charter is a legal document that establishes a corporation or municipality and defines its rights, privileges, and purposes.