Table of Contents
Why is an indifference curve convex to the origin and downward sloping?
ii Indifference Curve is convex to the origin : Because it is assumed that Marginal Rate of Substitution falls continuously as the consumer moves downwards along the curve. It is due to the Law of Diminishing Marginal Utility.
What is convex to the origin?
“Mathematically, a ‘convex to the origin’ curve is described by saying that if A and B are any two points on the curve, then a ray passing through the origin O and any point X on the line segment AB will meet the curve at most at one point D between O and X”.
Why is the indifference curve convex to origin quizlet?
A particular indifference curve reflects a constant level of utility, so the consumer is indifferent among all consumption combinations along a given curve. Combinations are equally attractive. Because of the law of diminishing marginal rate of substitution, indifference curves bow in toward the origin.
What does a convex indifference curve mean?
Convexity of indifference curves implies that the marginal rate of substitution of X for Y falls as more of X is substituted for Y. Thus, indifference curves are convex to the origin when principle of diminishing marginal rate of substitution holds good and which is generally the case.
Why do convex indifference curves have negative slope quizlet?
Why does the an indifference curve have a negative slope? marginal rate of substitution- the rate at which you are willing to reduce the consumption of one good to get one more unit of another good and still remain indifferent. can an indifference curve intersect another indifference curve?
Why indifference curve is concave to the origin?
If the marginal rate of substitution is increasing, the indifference curve will be concave to the origin. This is typically not common since it means a consumer would consume more of X for the increased consumption of Y (and vice versa).
Why indifference curve is not concave to origin?
Along the curve, the sum of the total utility obtained from different units of each of the products is the same. Indifference curves are convex to the origin because the increase in utility from an increase of a single unit of any product does not remain the same.
Why are indifference curves negatively sloped?
Answer : An indifference curve always slopes downward from left to right, i.e. it has a negative slope. This is so because if a consumer wants to have more units of one commodity; he will have to reduce the number of units of the other commodity, due to his limited income.