An Indifference Curve Is Negatively-Sloped Because

question 41

Multiple Choice

An indifference curve is negatively-sloped because:

• A)utility is a subjective concept.
• B)as the consumer obtains additional units of one good, the consumer is willing to sacrifice increasing amounts of the other good.
• C)in order to remain at the same level of utility, if an individual gets more of one good, he must sacrifice some of the other good.
• D)marginal utility is constant along an indifference curve, and increases in the consumption of one good cause the price of that good to fall.

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Definitions:

Physiological Psychology

A branch of psychology that studies the relationship between behavior and the physical processes of the brain and other parts of the nervous system.

University of Leipzig

The University of Leipzig is a renowned research university located in Leipzig, Germany, established in 1409, making it one of the world's oldest universities.

Wilhelm Wundt

A German psychologist widely considered the father of experimental psychology, who established the first psychological laboratory.

Objective Measure

A method of assessment that is independent of personal bias or interpretation, often utilizing tools or instruments for data collection.