Consider an indifference curve drawn for movies and pizzas.Which of the following statements about this indifference curve is false?
A)As an individual consumes more pizzas, the amount of movies the consumer is willing to give up for an additional pizza increases.
B)If the individual consumes more pizzas, the amount of movies consumed must fall if the consumer is to stay on the same indifference curve.
C)The indifference curve will be convex to the origin, that is, bowed in toward the origin.
D)If the consumer purchases more of movies and pizzas, total utility will increase, but the consumer will be on a new indifference curve that is farther from the origin than the original indifference curve.

Question

Quizplus · Accepted Answer

The statement A is false because as an individual consumes more pizzas, the marginal rate of substitution (the amount of movies the consumer is willing to give up for an additional pizza) decreases, not increases. This is due to the diminishing marginal rate of substitution, which is a characteristic of most indifference curves.

Consider an Indifference Curve Drawn for Movies and Pizzas