--%>

Why indifference curve is convex

Why the indifference curve is convex to origin?

E

Expert

Verified

The Indifference curve is always convex to the origin due to diminishing marginal rate of substitution.

   Related Questions in Microeconomics

  • Q : Characterization of markets Each and

    Each and every market is characterized by: (i) Widespread advertising, marketing, and sales promotions. (ii) Demands from each and every individual for all products. (iii) Potential buyers ready to pay and potential sellers ready to supply. (iv) Government licenses pr

  • Q : Reallocation of resources-Government

    Describe the Reallocation of resources objective of the government budget.

  • Q : Present value of asset by financial

    When the interest rate is 5% and a financial investment produces annual payments of price $50,000, in that case the present value of this asset is: (w) $1,000,000. (x) $5,000,000. (y) $500,000. (z) $10,000,000.

    Q : Example of temporary housing shortage

    After the change within the demand curve for housing as: (1) a temporary housing shortage may exist at R0. (2) landlords will have more complexity repaying their mortgages. (3) rental rates will fall below interest payments. (4) equilibrium

  • Q : Capital receipts Why borrowing is

    Why borrowing is treated as capital receipts? Answer: Because it rises the liability of government.

  • Q : Problem on demand curve shifting right

    Can someone help me in finding out the right answer from the given options. Soybean farming is very much competitive, and United States is the major producer. The soybean mold carried on kangaroo rat fur devastates this year’s crop. This blight is eventually lea

  • Q : Labor Contracts-Check-off Provisions

    Can someone help me in finding out the right answer from the given options. The check-off provision stated as: (1) Was outlawed by Taft Hartley Act. (2) Is illegal in the union shops. (3) Simplifies the union dues collection. (4) Differentiates union shops from the ag

  • Q : Problem on market boundaries The

    The market’s boundaries are stated by: (i) Legislation. (ii) The number of sellers and buyers in the market. (iii) The ease of trading among sellers and buyers. (iv) Geographical borders. Choose the right ans

  • Q : When is minimum wage legislation LEAST

    Minimum wage legislation is LEAST probable to stimulate: (w) higher teenage unemployment. (x) raised racial discrimination. (y) surpluses of unskilled workers. (z) decreased wage incomes for unskilled workers who keep their jobs.

    Q : Price elasticity for quantities and

    Suppose that all these curves are infinitely long straight lines. There supply curve which is relatively (although not perfectly) price elastic for all quantities and prices is: (1) supply curve S1. (2) supply curve S2. (3) suppl