The property of consumption sets that implies that it is possible to combine two bundles to produce a third by consuming fractions of them is called convexity.

Question

Quizplus · Accepted Answer

Convexity of the consumption sets means that for any two bundles in the set, any combination of these two bundles can also be a part of the set, which includes consuming fractions of the two bundles. Therefore, the given statement is true.

The Property of Consumption Sets That Implies That It Is