Indifference curve always slopes:

Downwards to the right

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Upwards to the right

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Horizontal to X-axis

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Vertical and parallel to Y-axis

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Solution

The correct option is A Downwards to the right
IC always slopes downwards to the right, because they follow the law of $D M R S_{x y}$ (Diminishing marginal rate of substitution), where an increase in a unit of good X, will require a sacrifice of more than one unit of good Y.

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Similar questions

A consumer consumes only two goods. If the price of one of the goods falls, what happens to the indifference curve?

a. Shifts upwards

b. Shifts downwards

c. Can shift both upwards or downwards

d. Does not shift

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