For which of the following pairs of goods would most people likely have convex indifference curves?
A)nickels and dimes
B)left shoes and right shoes
C)movie tickets and concert tickets
D)None of the above.

Question

Quizplus · Accepted Answer

Movie tickets and concert tickets are likely to have convex indifference curves because people's preferences may vary depending on the quantity consumed. For example, someone may be willing to pay more for the first few movie tickets (to see their favorite actor in a new release), but as they go to more movies, the marginal utility may decrease and they may be willing to pay less for additional tickets. On the other hand, for concert tickets, someone may be willing to pay a lot for the first ticket to see their favorite band, but the marginal utility may increase for additional tickets if they want to go with friends or catch multiple shows if the band is touring. Therefore, the indifference curves for movie tickets and concert tickets are likely to be convex. The other options (nickels and dimes, left shoes and right shoes) are not likely to have convex indifference curves.

For Which of the Following Pairs of Goods Would Most