When indifference curves are bowed in toward the origin,
A)consumers are less inclined to trade away goods they are lacking.
B)consumers' willingness to trade away goods they have in abundance diminishes.
C)an increase in income will shift the indifference curve away from the origin.
D)a decrease in income will shift the indifference curve toward the origin.

Question

Quizplus · Accepted Answer

Indifference curves that are bowed toward the origin reflect diminishing marginal rates of substitution, meaning consumers are less willing to trade away goods they have less of.

When Indifference Curves Are Bowed in Toward the Origin