An Indifference Curve Slopes Downward Because

question 85

Multiple Choice

An indifference curve slopes downward because

• A)it shows that people are only happy when they increase consumption of all goods.
• B)it shows that when a person gives up some of good X they must increase their consumption of good Y to remain indifferent.
• C)it shows that when a person gives up some of good X they can afford to increase their consumption of good Y.
• D)it is a demand curve without prices.
• E)the quantity demanded increases as the price falls.

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Definitions:

Goodwill

The intangible asset that arises as a result of the acquisition of one company by another for a premium value, representing the reputation, brand, or customer relations.

Equal Emphasis

Giving the same level of importance or attention to all elements or aspects of something.

Fairness

The quality of making judgments that are free from discrimination or dishonesty; impartiality.

You-viewpoint

A perspective in communication emphasizing the interests and concerns of the audience or recipient.