Convexity of the indifference curve follows from
A) the fact that more is preferred to less.
B) the fact that consumption and leisure are normal goods.
C) the fact that consumers are indifferent to consumption and leisure goods.
D) the fact that consumers prefer diversity.
E) the fact that income plays a significant role in consumption and leisure decisions.

Question

Quizplus · Accepted Answer

Convexity of indifference curves reflects the preference for diversity, meaning consumers prefer a mix of goods rather than extremes of one good over another.

Convexity of the Indifference Curve Follows from