76 389
Assignments Done
Successfully Done
In May 2019

Answer to Question #45903 in Microeconomics for Behailu

Question #45903
What connection do you realize between the convexity of indifferent curve and the marginal rate of substitution?
Expert's answer
The negative slope of the indifference curve implies that the marginal rate of substitution is always positive.
Indifference curves are typically represented to be convex. Convex preferences imply that the indifference curves cannot be concave to the origin, i.e. they will either be straight lines or bulge toward the origin of the indifference curve. If the latter is the case, then as a consumer decreases consumption of one good in successive units, successively larger doses of the other good are required to keep satisfaction unchanged.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question

Privacy policy Terms and Conditions