Economics · Economics
Why does an indifference curve slope downwards?
- 1Due to the assumption of constant utility.
- 2Due to the assumption of diminishing marginal utility.✓
- 3Due to the assumption of diminishing rate of substitution.
- 4Due to the assumption of cardinality of utility from two goods X and Y.
Correct answer
Due to the assumption of diminishing marginal utility.
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