The bowed shape of the indifference curve reflects the consumer's
A)unwillingness to give up a good that he already has in large quantity.
B)unwillingness to purchase a good that he already has in large quantity.
C)greater willingness to give up a good that he already has in large quantity.
D)greater willingness to purchase a good that he already has in large quantity.

Question

Quizplus · Accepted Answer

The bowed shape of the indifference curve reflects the fact that the consumer is willing to give up more of one good only if he already has a lot of it. This is because the more of a good he has, the less he values an additional unit of it, so he requires more compensation (in the form of the other good) to give up that unit. This explains the bowed shape of the indifference curve, which shows that the rate at which the consumer is willing to trade off one good for another varies along the curve.

The Bowed Shape of the Indifference Curve Reflects the Consumer's