That indifference curves are bowed in toward the origin
A) is not true.
B) follows from the fact that more is preferred to less.
C) follows from the property that the consumer likes diversity in his or her consumption bundle.
D) follows from the property that consumption and leisure are normal goods.
E) follows from the fact that there is a direct relationship between consumption and leisure bundles.

Question

Quizplus · Accepted Answer

Indifference curves are bowed toward the origin because consumers prefer a mix of goods, reflecting a diminishing marginal rate of substitution. This means they are willing to give up less of one good to get more of another as they consume more of it, indicating a preference for diversity.

That Indifference Curves Are Bowed in Toward the Origin