Convexity of indifference curves implies that consumers are willing to
A) give up more "y" to get an extra "x" the more "x" they have.
B) give up more "y" to get an extra "x" the less "x" they have.
C) settle for less of both "x" and "y".
D) acquire more "x" only if they do not have to give up any "y".

Question

Quizplus · Accepted Answer

Convexity of indifference curves shows that consumers have diminishing marginal rate of substitution, meaning they are willing to give up less and less of "y" to get an extra unit of "x" as they have more "x". Therefore, option B is the correct choice.

Convexity of Indifference Curves Implies That Consumers Are Willing to