An indifference curve is:
A) downward sloping and concave to the origin.
B) downward sloping and convex to the origin.
C) upward sloping and concave to the origin.
D) upward sloping and convex to the origin.

Question

Quizplus · Accepted Answer

Indifference curves represent combinations of goods that give the same level of satisfaction or utility to a consumer. They are downward sloping because as the quantity of one good increases, the consumer is willing to give up some of it to get more of the other good to maintain the same level of satisfaction. They are convex to the origin because the marginal rate of substitution between the two goods tends to decrease as more of one good is consumed, increasing the amount of the other good that the consumer would be willing to give up to obtain more of the first good.

An Indifference Curve Is