Asked by Michael McGlinchey on May 08, 2024
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.
Verified Answer
Learning Objectives
- Discern how the slope of an indifference curve signifies consumer's choices and trade-offs.
Related questions
It Is Possible for a Consumer's Indifference Curves to Intersect
Indifference Curves Are Convex to the Origin Due to Diminishing ...
Indifference Analysis Assumes That Utility Is Numerically Measurable
In Moving Northeasterly from the Origin, We Encounter Indifference Curves ...
In Order to Represent a Consumer's Choices on a Graph ...