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Question

Indifference curve always slopes:
(A) Downwards to the right
(B) Upwards to the right
(C) Horizontal to X-axis
(D) Vertical and parallel to Y-axis

Answer

Answer: A
IC always slopes downwards to the right,because they follow the law of \(DMRS_{xy}\) (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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