That indifference curves are bowed in toward the origin
A)follows from the property that the consumer likes diversity in his or her consumption bundle.
B)follows from the fact that there is a direct relationship between consumption and leisure bundles.
C)follows from the property that consumption and leisure are normal goods.
D)is not true.
E)follows from the fact that more is preferred to less.

Question

Quizplus · Accepted Answer

Indifference curves are bowed in toward the origin because the consumer likes diversity in his or her consumption bundle. This means that as the consumer consumes more of one good, the marginal utility of the additional units of that good decreases, and the consumer is willing to trade some of that good for more of the other good in order to maintain overall satisfaction. This leads to the curved shape of the indifference curves.

That Indifference Curves Are Bowed in Toward the Origin