Indifference curves cannot be concave to the origin because
A) consumers generally will prefer to have more of a good than less of a good.
B) the satisfaction consumers get from consuming additional units of a good declines.
C) consumers must give up more of one good to obtain more of another good.
D) the substitution effect holds across indifference curves.

Question

Quizplus · Accepted Answer

Indifference curves are typically convex to the origin because of the diminishing marginal rate of substitution, which reflects the declining satisfaction (or utility) from consuming additional units of a good.

Indifference Curves Cannot Be Concave to the Origin Because