Indifference curves are convex to the origin because of:

Diminishing marginal rate of substitution

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Increasing marginal rate of substitution

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Constant marginal rate of substitution

No worries! We‘ve got your back. Try BYJU‘S free classes today!

None of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A Diminishing marginal rate of substitution
IC are convex to the origin because they follow the law of $D M R S_{x y}$ (Diminishing marginal rate of substitution).

Suggest Corrections

Similar questions

Explain the concept of 'Marginal Rate of Substitution' with the help of a numerical example. Describe its behaviour along an indifference curve.

Join BYJU'S Learning Program