Convexity of indifference curves imply 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 reflects diminishing marginal rate of substitution, meaning consumers are willing to give up less of "y" to obtain an additional unit of "x" as the quantity of "x" they have increases. This implies a decreasing willingness to substitute "x" for "y" as they accumulate more of "x".

Convexity of Indifference Curves Imply That Consumers Are Willing to