Why Do Indifference Curves Have a Negative Slope

question 188

Multiple Choice

Why do indifference curves have a negative slope?

• A)because consumers take market prices as given
• B)because consumers face a budget constraint
• C)because to keep utility constant, a consumer must get more of one good if she is to give up some of the other
• D)because scarcity implies that it is not possible to consume more of one good without giving up some of the other

---

Definitions:

Civil Law

A legal system originating in Europe, codified into comprehensive statutes, rather than case law, to govern private sector disputes.

Restatements

Scholarly works published by the American Law Institute, offering a comprehensive summary of common law and its application in specific areas of law.

Common Law

The body of law developed through decisions of courts and similar tribunals (the judiciary), as opposed to laws made by the legislature (statutory laws) or by executive action (regulations).

Restatements

Documents published by the American Law Institute, intended to distill the common law and its statutory elements to clarify the principles.