Why is indifference curve convex to origin? – InterviewSolution

InterviewSolution

1.

Why is indifference curve convex to origin?

Answer»

The convexity of indifference curves implies:

That the two goods are imperfect substitutes for one another.
That the Marginal Rate of Substitution (MRS) between the two goods decreases as a consumer moves along an indifference curve.

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