Chapter EMD, Problem 3MCQ

To determine

To state: The option that describes what increases, when moving from left to right on an indifference curve.

Answer to Problem 3MCQ

The correct option is b, i.e., the marginal utility of the horizontal axis good.

Explanation of Solution

Indifference curve is defined as a chart depicting various combinations of two commodities or goods that leave the consumer equally satisfied or equally well off.

The four features of indifference curves are as follows: IC curves can never cross, the farther an indifference curve lies, the higher the utility it shows, they always slope downwards, and they are convex.

So, the correct option is B i.e marginal utility of the horizontal axis good. As the IC curve slopes downward. So, moving from left to right, the MU of the good on the horizontal axis increase.