Theory of consumer behaviour — Economics STD 12 Humanities & Commerce — Question
Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsTheory of consumer behaviour2 Marks
Question
Why is an indifference curve negatively sloped? Explain.
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Answer
All points on an IC show the same level of utility from the consumption of the two goods, the consumer consumes. So, if the consumer consumes more of one good, he must reduce the consumption of the other good to keep total level of utility the same. This makes an IC negatively sloped.
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