If there are only two goods, if more of good 1 is always preferred to less, and if less of good 2 is always preferred to more, then:Group of answer choicesindifference curves slope downwards.indifference curves slope upwards.indifference curves may cross.indifference curves could take the form of ellipses.
Question
If there are only two goods, if more of good 1 is always preferred to less, and if less of good 2 is always preferred to more, then:Group of answer choicesindifference curves slope downwards.indifference curves slope upwards.indifference curves may cross.indifference curves could take the form of ellipses.
Solution 1
Indifference curves slope upwards.
Here's why:
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An indifference curve represents all combinations of two goods that a consumer views as equally preferable.
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If more of good 1 is always preferred to less, this means that the consumer derives more utility (satisfaction) from consuming more of good 1. This would typically result in an upward sloping indifference curve, as more of good 1 (on the horizontal axis) is preferred.
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If less of good 2 is always preferred to more, this means that the consumer derives less utility from consuming more of good 2. This would also result in an upward sloping indifference curve, as less of good 2 (on the
Solution 2
Indifference curves slope upwards.
Here's why:
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An indifference curve represents all combinations of two goods that a consumer views as equally preferable.
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If more of good 1 is always preferred to less, this means that as we
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