What is the cause behind the convexity of indifference curve to the origin?
What is the cause behind the convexity of indifference curve to the origin?
Solution
✅ Correct Option: 1
An indifference curve is convex to the origin because of the diminishing marginal rate of substitution: as the consumer has more of one good, the amount of the other good they are willing to give up for an extra unit keeps falling.
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