Write true or false with a reason:
Indifference curve is not convex to the origin in case of two normal goods.

True

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False

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Solution

The correct option is B False
False.
Indifference curve is convex to the origin in case of two normal goods and is not convex in case of inferior goods. This is because MRS tends to diminish. And, MRS must diminish in accordance with the law of diminishing marginal utility.

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Similar questions

Write true or false with a reason:

Slope of indifference curve shows MRS.

Write true or false with a reason:

If IC is convex to the origin, MRS should not be diminishing.

Identify which of the following is not true for the Indifference Curves. Give valid reasons for choice of your answer:

a. Lower indifference curve represents lower level of satisfaction.

b. Two regular convex to origin indifference curves can intersect each other.

c. Indifference curve must be convex to origin at the point of tangency with the budget line at the consumer’s equilibrium.

d. Indifference curves are drawn under the ordinal approach to consumer equilibrium.

A consumer has total money income of Rs 250 to be spent on two goods X and Y with prices of Rs 25 and Rs 10 per unit respectively. On the basis of the information given, answer the following questions:

a. Give the equation of the budget line for the consumer.

b. What is the value of slope of the budget line?

c. How many units can the consumer buy if he is to spend all his money income on good X?

d. How does the budget line change if there is a fall in price of good Y?

Write true or false with a reason:

In an indifference map, higher IC always points to higher level of satisfaction.

Q. Indifference curves are convex to the origin because of:

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Write true or false with a reason:Indifference curve is not convex to the origin in case of two normal goods.

The correct option is B FalseFalse. Indifference curve is convex to the origin in case of two normal goods and is not convex in case of inferior goods. This is because MRS tends to diminish. And, MRS must diminish in accordance with the law of diminishing marginal utility.

Write true or false with a reason:
Indifference curve is not convex to the origin in case of two normal goods.

The correct option is B False
False.
Indifference curve is convex to the origin in case of two normal goods and is not convex in case of inferior goods. This is because MRS tends to diminish. And, MRS must diminish in accordance with the law of diminishing marginal utility.