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Why is an indifference curve convex to the origin? (A) Indifference curve slope downward to the right (B) Two commodities are imperfect substitutes (C) Declining marginal rate of substitution between commodities (D) Diminishing marginal utilities Choose the most appropriate answer from the options given below:

Why is an indifference curve convex to the origin? (A) Indifference curve slope downward to the right (B) Two commodities are imperfect substitutes (C) Declining marginal rate of substitution between commodities (D) Diminishing marginal utilities Choose the most appropriate answer from the options given below: Correct Answer B and C only

The correct Answer is B and C

Key Points Indifference curves:

  • An indifference curve is a graph showing a combination of two goods that give the consumer equal satisfaction and utility.
  • It shows a combination of two goods giving a consumer equal satisfaction making the consumer indifferent.
  • A higher indifference curve represents a higher level of satisfaction because the higher Indifference Curve means a bundle comprising both the goods or the same quantity of one good and more quantity of the other good.

Important PointsReasons for Indifference Curve being convex to the origin: 

 Two commodities are imperfect substitutes

  • The downward-sloping curve indicates that when the amount of one commodity in the combination is increased, the amount of other commodities is reduced.
  • This must be so if the level of satisfaction is to remain constant on the same indifference curve. 

 Declining marginal rate of substitution between commodities:

  • When a consumer picks the substitute over another good, rather than simultaneously consuming more, marginal substitution is diminishing.
  • MRS diminishes as one proceeds down a standard convex-shaped curve, which is the indifference curve, according to the law of diminishing marginal rates of substitution.
  • This is one of the reason for the indifference curve being convex to the origin.

Related Questions

Indifference curves relating to supply of labour have a number of properties some of which are mentioned below
1. Indifference curves are downward slopping
2. Indifference curves are upward slopping
3. Higher indifference curves indicate lower levels of utility
4. Higher indifference curves indicate higher levels of utility
5. Indifference curves do not intersect
6. Indifference curves intersect
7. Indifference curves are concave to the origin
8. Indifference curves are convex to the origin
Which among the following properties are not true?
When labour is plotted on X-axis and capital is plotted on Y-axis and an iso-quant is prepared, then which of the following statements is/are false ? (a) Marginal rate of technical substitution of labour for capital is equal to the slope of the iso-quant. (b) Marginal rate of technical substitution of labour for capital is equal to change in the units of capital divided by the change in the units of labour. (c) Marginal rate of technical substitution of labour for capital is the ratio of marginal productivity of capital to marginal productivity of labour.
When labour is plotted on X-axis and capital is plotted on Y-axis and an isoquant is prepared, then which of the following statement(s) is/arefalse?
1. Marginal rate of technical substitution of labour for capital is equal to the slope of the iso-quant.
2. Marginal rate of technical substitution of labour for capital is equal to change in the units of capital divided by the change in the units of labour.
3. Marginal rate of technical substitution of labour for capital is the ratio of marginal productivity of capital to marginal productivity of labour.
Consider the following statements about indifference curves: 1. Indifference curves are convex to the origin. 2. Higher indifference curve represents higher level of satisfaction. 3. Two indifference curves cut each other. Which of the statements given above is/are correct?
Consider the following statements about indifference curves: 1. Indifference curves are convex to the origin. 2. Higher indifference curve represents higher level of satisfaction. 3. Two indifference curves cut each other.Which of the statements given above is/are correct?
Which of the following explains the downward slope of an ordinary demand curve? (A) Income effect of price change (B) Substitution effect of price change (C) Utility Maximising behaviour of consumer (D) Risk averse behaviour of consumer Choose the most appropriate answer from the options given below:
Put into chronological order on the basis of development:
1. Law of demand
2. Law of indifference
3. Law of diminishing marginal utility
4. Revealed preference curve
5. Indifference curve
Statement (A): The isoquant curves are drawn convex to the origin due to the diminishing technical rate of substitution.
Statement (B): The lesser the convexity of the isoquant curve, the greater the possibility of the complementarity of the two inputs.
Statement I The isoquant curves are drawn convex to the origin due to diminishing technical rate of substitution.
Statement II The lesser the convexity of the isoquant curve, the greater the possibility of the complementarity of the two inputs.
Consider the following statements: 1. The rate of population growth is increasing in the country 2. The death rate is declining faster in the country compared to birth rate 3. The birth rate is declining faster in the country compared to death rate 4. Rural-urban migration is taking place regularly in the country Which one of the following conclusions may be true in the light of the above facts?