Indifference curves are convex because of the diminishing
A) law of demand
B) income
C) prices
D) choices to consumers
E) marginal rates of substitution

Question

Quizplus · Accepted Answer

Indifference curves are convex due to the principle of diminishing marginal rates of substitution, which states that as a consumer substitutes one good for another, the amount of the good being given up that the consumer is willing to trade for an additional unit of the other good decreases.

Indifference Curves Are Convex Because of the Diminishing