Given scale of preferences as between different combinations of two goods
Diminishing marginal rate of substitution
Constant marginal utility of money
Consumers would always prefer more of a particular good to less of it, other things remaining the same
✅ The correct answer is C.
Constant marginal utility of money is not a assumption of the theory of demand based on analysis of indifference curves. An indifference curve is a graph that shows a combination of two goods that give a consumer equal satisfaction and utility, thereby making the consumer indifferent.
Constant marginal utility of money is not a assumption of the theory of demand based on analysis of indifference curves. An indifference curve is a graph that shows a combination of two goods that give a consumer equal satisfaction and utility, thereby making the consumer indifferent.