Convexity of Indifference Curves Implies That _____

question 74

Multiple Choice

Convexity of indifference curves implies that _____.

• A)the marginal utility of a good decreases as the consumer moves along the indifference curve
• B)the total utility decreases as the consumer moves downward along the indifference curve
• C)the marginal utility along the indifference curve remains constant
• D)the total utility increases as the consumer moves downward along the indifference curve

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Definitions:

Equilibrium Price

The price point at which the supply of an item matches the demand for it, resulting in a stable market situation without excess or shortage.

Equilibrium Quantity

The quantity of a good or service at which supply equals demand, resulting in no net surplus or shortage in the market.

Ironing Boards

Flat, foldable boards used as a stable surface for ironing clothes and linens.

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at a particular price level, reaching a state of market balance.