Figure 5-13 -If the Slope of an Indifference Curve Between Two Goods

question 131

Multiple Choice

Figure 5-13
-If the slope of an indifference curve between two goods decreases as we move from left to right (dropping all minus signs) , we infer that the consumer

• A)is less willing to trade away a good when he has a lot of it.
• B)is more willing to trade away a good when he has a lot of it.
• C)always tries to keep the percentage of his budget spent on each good constant.
• D)views one of the goods as inferior.

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Definitions:

Inferior Good

A type of good whose demand decreases as consumers' income increases, opposite to normal goods.

Normal Good

A good for which demand increases when consumer income rises, and falls when consumer income decreases.

Complementary Goods

Products or services that are typically consumed together because the use of one enhances the use of the other.

Raclette Cheese

Raclette Cheese is a semi-hard cheese from Switzerland, known for its melting qualities and typically used in the dish also called Raclette, where the cheese is heated and scraped onto dishes.