Indifference curves tend to be bowed inward because of diminishing
A) marginal rates of substitution.
B) demand for the good as prices rise.
C) income.
D) supply of the good being consumed.

Question

Quizplus · Accepted Answer

Indifference curves are bowed inward due to diminishing marginal rates of substitution, meaning that as more of one good is consumed relative to another, the marginal utility of that good decreases while the marginal utility of the other good increases. This causes the slope of the indifference curve to become flatter as one moves down the curve to higher quantities of the same good, resulting in a bowed inward shape.

Indifference Curves Tend to Be Bowed Inward Because of Diminishing