Which one is not a assumption of the theory of demand based on analysis of indifference curves?

A Given scale of preferences as between different combinations of two goods
B Diminishing marginal rate of substitution
C Constant marginal utility of money
D Consumers would always prefer more of a particular good to less of it, other things remaining the same

Correct Answer: Constant marginal utility of money

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.

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