Indifference curves have a negative, concave slope because

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    The principle of diminishing marginal utility requires that as consumption of one good increases, more and more of other goods must be given up to keep the level of satisfaction constant.
     as one moves downward and to the right along an indifference curve, and consumption of one good is substituted for the consumption of another, total satisfaction falls.
     The principle of diminishing marginal utility requires that as consumption of one good increases, fewer and fewer of other goods must be given up to keep the level of satisfaction constant.
     as one moves upward and to the right along an indifference curve, and consumption of one good is substituted for the consumption of another, total satisfaction rises.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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The principle of diminishing marginal utility requires that as consumption of one good increases, fewer and fewer of other goods must be given up to keep the level of satisfaction constant.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



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