Because of the convexity assumption and the fact that indifference curves farther from the origin contain higher levels of utility, indifference curves
A) are bowed out from the origin
B) are bowed in toward the origin
C) all pass through the origin

Question

Quizplus · Accepted Answer

Indifference curves are typically bowed in toward the origin due to the principle of diminishing marginal rate of substitution, which reflects the convexity assumption in consumer preference theory. This shape indicates that as a consumer substitutes one good for another, the amount of the second good needed to maintain the same level of utility increases.

Because of the Convexity Assumption and the Fact That Indifference