A diminishing marginal rate of substitution implies that indifference curves are
A)Convex
B)Concave
C)Straight lines
D)Positively sloped

Question

Quizplus · Accepted Answer

A diminishing marginal rate of substitution implies that as a consumer substitutes one good for another, the amount of the good being given up decreases. This results in convex indifference curves, reflecting a decreasing willingness to substitute goods.

A Diminishing Marginal Rate of Substitution Implies That Indifference Curves