The convexity of an indifference curve shows:
A)Diminishing MRS
B)Increasing MRS
C)Constant MRS
D)None

Name: The convexity of an indifference curve shows: A)Diminishing MRS B)Increasing MRS C)Constant MRS D)None
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Question

Quizplus · Accepted Answer

The convexity of an indifference curve to the origin represents diminishing marginal rates of substitution (MRS), indicating that as a consumer substitutes one good for another, the amount of the good being given up decreases.

The Convexity of an Indifference Curve Shows