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प्रश्न
Explain why is an indifference curve is Convex.
उत्तर
At the point of tangency of the budget line and the indifference curve, the indifference curve must be convex to the origin, i.e. the MRS must fall. In other words, for every additional unit increase in consumption of one good, the consumer must be willing to sacrifice less and fewer units of the other good. That is the law of diminishing marginal utility must be followed.
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संबंधित प्रश्न
Explain the three properties of the indifference curves.
Define an indifference curve.
State the meaning and properties of production possibilities frontier.
Why is an indifference curve negatively sloped? Explain.
Define indifference map.
Assertion (A): A lower indifference curve represents a higher level of satisfaction.
Reason (R): According to the Indifference Curve Approach, utility is an ordinal concept, that is, it can be ranked and not measured.
Which of these is not a property of indifference curve?
"Higher indifference curve represents fewer quantities of one or both goods, a higher indifference curve shows higher utility level." Choose the correct option for the above mentioned statement:
Indifference curve is:
Which of the following is an assumption for Indifference Curve Approach.
Which of the following statements are incorrect?
Observe the graph given below and answer the question that follow.
- Give a reason to explain if the graph shown above can be a common phenomenon or not. [2]
- What is an indifference map? Draw its diagram. [2]
- State any two differences between cardinal utility and ordinal utility. [2]
Points K and T will NOT be attained by the consumer. Select the reason from the options given below.
Will you defend or refute the case depicted in the following diagram? Provide a rationale in support of your view.
