Question
Which statement about an indifference curve diagram with good 1 on the horizontal axis and good 2 on the vertical axis is not correct? a.The
Which statement about an indifference curve diagram with good 1 on the horizontal axis and good 2 on the vertical axis isnotcorrect?
a.The marginal rate of substitution tells you how many units of good 2 you are willing to give up in order to get one more unit of good 1.
b.Transitivity and preferring more to less imply that indifference curves cannot cross.
c.The utility maximizing bundle will always be found at a tangency between the indifference curve and the budget constraint.
d.Indifference curves are downward sloping because consumers have non-satiated preferences.
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