Which of the following is true about the indifference curve where one commodity (such as pollution) is "bad"?
A) It has a negative slope.
B) It has a positive slope.
C) It is horizontal.
D) It is vertical.

Question

Quizplus · Accepted Answer

When one commodity is "bad," the indifference curve has a positive slope because the consumer requires more of the "good" commodity to compensate for the increase in the "bad" commodity to maintain the same level of utility.

Which of the Following Is True About the Indifference Curve