Which of the following is not a reason that economists use the assumption that indifference curves are convex?
A)It directs attention to the relevant part of the curve.
B)It is measurable.
C)It is convenient.
D)It is reasonable.

Question

Quizplus · Accepted Answer

The convexity assumption is used because it implies that consumers prefer diversity in their consumption choices and are willing to exchange some of one good for more of another. It directs attention to the relevant part of the curve, is convenient for analysis, and is generally reasonable given real-world consumption patterns. However, measurability is not a reason for using this assumption; rather, it is a property that arises from the convexity assumption.

Which of the Following Is Not a Reason That Economists