Why do convex indifference curves 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

Question

Quizplus · Accepted Answer

Convex indifference curves indicate diminishing marginal utility, meaning that as a consumer wants to keep their utility constant, they must give up more and more of one good to get a little more of the other. This results in a negative slope for the indifference curve. Choices A, B, and D are not directly related to the slope of indifference curves.

Why Do Convex Indifference Curves Have a Negative Slope