GK
BUSINESS ECONOMICS
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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 vertical straight line
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A horizontal straight line
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Detailed explanation-1: -The indifference Curve is convex to origin because of decreasing MRS (Marginal rate of substitution).
Detailed explanation-2: -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.
Detailed explanation-3: -Each point on an indifference curve indicates that a consumer is indifferent between the two and all points give him the same utility. Description: Graphically, the indifference curve is drawn as a downward sloping convex to the origin. The graph shows a combination of two goods that the consumer consumes.