When an individual's consumption of an additional unit of a good generates a smaller increase in total utility than the previous unit consumed,then this person's indifference curve will be:
A)a straight line.
B)convex,or bowed toward the origin.
C)concave,or bowed away from the origin.
D)a right angle.

Question

Quizplus · Accepted Answer

This phenomenon is described by the law of diminishing marginal utility, which states that as a person consumes more units of a good, the additional satisfaction (utility) gained from consuming each additional unit decreases. Indifference curves, which represent combinations of goods that provide the same level of utility to the consumer, are typically convex (bowed toward the origin) to reflect this diminishing marginal utility.

When an Individual's Consumption of an Additional Unit of a Good