Multiple choice

Indifference Curve moves

  1. From left to right and down-wards

  2. From left to right and upwards

  3. From left to right but parallel to Y-axis

  4. Nove upwards parallel to Y-axis
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A Correct answer
Explanation

Indifference curves are convex to the origin and slope downward from left to right. This negative slope represents the trade-off between two goods - as you consume more of one good, you must consume less of another to maintain the same level of satisfaction. They cannot slope upward (which would imply more of both goods gives same utility) or be vertical/horizontal.

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