A bowed shaped indifference curve reflects a consumer's:
A)greater willingness to give up a good that she has an abundance of
B)lower willingness to give up a good that she has an abundance of
C)desire to specialise in the consumption of one good over another
D)unwillingness to substitute one good for another

Question

Quizplus · Accepted Answer

A bowed shaped indifference curve indicates that the consumer is willing to give up more of one good if they have an abundance of it, in order to obtain more of the other good. This is because the marginal utility of the abundant good is relatively low, while the marginal utility of the scarce good is relatively high. Therefore, the consumer is willing to trade off more of the abundant good for additional units of the scarce good, resulting in a bowed shape of the indifference curve.

A Bowed Shaped Indifference Curve Reflects a Consumer's