Asked by Michael McGlinchey on May 08, 2024

verifed

Verified

As you move up an indifference curve, the absolute value of the slope

A) increases.
B) decreases.
C) remains constant.
D) initially increases and then decreases.

Indifference Curve

Represents a graph that shows a combination of two goods that give the consumer equal satisfaction and utility, thereby making the consumer indifferent.

Absolute Value

A mathematical function that describes the distance of a number on the real number line from zero, without considering direction.

Slope

The rate at which one variable changes in relation to another variable, often used in the context of a graph.

  • Discern how the slope of an indifference curve signifies consumer's choices and trade-offs.
verifed

Verified Answer

ST
Steven TylerMay 13, 2024
Final Answer :
A
Explanation :
The absolute value of the slope of an indifference curve increases as you move up the curve, reflecting a higher marginal rate of substitution (MRS) due to the consumer substituting more of one good for another to maintain the same level of utility.