ECONOMICS
CONSUMERS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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convex to the origin
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concave to the origin
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a straight line curve
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none of this
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Detailed explanation-1: -An indifference curve being convex towards origin means that slope of the curve declines as the consumer moves along the curve from left to right.
Detailed explanation-2: -The indifference Curve is convex to origin because of decreasing MRS (Marginal rate of substitution). The curve represents the marginal rate of substitution.
Detailed explanation-3: -Indifference curve is convex to the origin in case of two normal goods and is not convex in case of inferior goods. This is because MRS tends to diminish. And, MRS must diminish in accordance with the law of diminishing marginal utility.
Detailed explanation-4: -Explanation: Since the marginal utility of each commodity ingested declines with successive consumption, indifference curves are convex to the origin.
Detailed explanation-5: -The indifference curve is drawn as a downward sloping convex to the origin because marginal rate of substitution continously decreases. The graph shows a combination of two goods that the consumer consumes. The consumer will be satisfied at any point along the curve assuming that other things are constant.