Why Do Convex Indifference Curve Have a Negative Slope

question 9

Multiple Choice

Why do convex indifference curve 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

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Definitions:

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting cognitions, beliefs, or values simultaneously.

Assimilation

The cognitive process of fitting new information into existing cognitive schemas, perceptions, and understanding.

Educational Settings

Environments or contexts where formal learning takes place, such as schools, colleges, and universities.

Repress

The psychological act of burying distressing thoughts, memories, or desires in the subconscious, to the point of becoming unaware of them.