Assume that a consumer's indifference curve is bowed inward and negatively sloped. As the consumer moves from left to right along the horizontal axis, the consumer's marginal rate of substitutionGroup of answer choicesincreases.decreases.increases, then decreases.remains constant.

If the tastes of a consumer satisfy the assumption of transitivity, her indifference curves must:Group of answer choicesNot cross the axesHave a positive slopeNot cross one anotherBend toward the originAll of the above

Fill in the spaces:a. Along an indifference curve ____________ is constant.b. The rate at which a consumer is willing to substitute one good for another, holding utilityconstant, is given by the ____________ of an indifference curve. This rate is called the_________________________________.c. If at a given combination of X and Y, a consumer’s marginal rate of substitution is 4, thismeans that the consumer is willing to give up ______ units of Y for another X or ______units of X for another Y.d. If a consumer is choosing the levels of goods X and Y in order to maximize utility with agiven budget the _________ equals the ____________ ratio of the goods.e. The rate at which a consumer can substitute one good for another in the market is given bythe ______ of the budget line and is equal to the __________ratio of the two goods

Indifference curves illustrateGroup of answer choicesa firm's profits.the prices of two goods.a consumer's preferences.a consumer's budget.

Suppose an indifference curve is positively sloped. Which assumption about the tastes is violated? Group of answer choicesCompletenessTransitivityMonotonicityConvexity

If a consumer is consuming both goods and the price of one of the goods rises, the consumer will experienceGroup of answer choicesa desire to consume a different bundle.a decrease in utility.a southwesterly movement on the indifference map.All of the above.