The slope of an indifference curve is ____ and a movement along the curve causes the loss in marginal utility (MU) of one good to ____ the marginal utility (MU) gained from another good.
A) zero; maximize
B) positive; exceed
C) concave; reduce
D) negative; equal

Question

Quizplus · Accepted Answer

The slope of an indifference curve is negative since it represents the rate at which one good can be traded for another while the level of satisfaction remains the same. A movement along the curve causes a reduction in the marginal utility of one good and an increase in the marginal utility of another good since the consumer is redistributing their consumption of goods to maintain the same level of satisfaction. Therefore, the correct choice is D.

The Slope of an Indifference Curve Is ____ and a Movement