1.Indicate True or False and explain why? The points scored for this question is dependent on theexplanation provided not just indicating True/False.

a.Consumer prefer higher indifference curves that represent greater combinations of goods and services to lower indifference curves that represent smaller combinations of goods and services.

b.The slope of the indifference curve shows the rate at which consumers are willing to trade-off goods and services.

c.When goods are relatively scarce, the law of diminishing marginal utility means that the added value of another unit of goods will be small in relation to the added value of another unit of services.