The property that implies that indifference curves are convex to the origin is:
A) more is better.
B) completeness.
C) transitivity.
D) diminishing marginal rate of substitution.

Question

Quizplus · Accepted Answer

The property that implies that indifference curves are convex to the origin is the diminishing marginal rate of substitution. This means that as we move down along an indifference curve, we need more and more of one good to compensate for the loss of the other good. This results in the curve becoming steeper, and hence convex to the origin. Choices A, B, and C are not related to the convexity of indifference curves.

The Property That Implies That Indifference Curves Are Convex to the Origin