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Which of the following is a property of an indifference curve?
- a)it is convex to the origin.
- b)the marginal rate of substitution is constant as you move along an indifference curve.
- c)marginal utility is constant as you move along an indifference curve.
- d)total utility is greatest where the 45 degree line cuts the indifference curve.
Correct answer is option 'A'. Can you explain this answer?
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Which of the following is a property of an indifference curve?a)it is ...
Property of an Indifference Curve
An indifference curve is a graphical representation of different combinations of two goods that give a consumer the same level of satisfaction or utility. The following is a property of an indifference curve:
Convexity to the Origin
The indifference curve is convex to the origin, which means that it is bowed inwards towards the origin. This property is due to the diminishing marginal rate of substitution (MRS), which indicates that as a consumer moves along an indifference curve, the MRS of one good for another good decreases.
The MRS is the rate at which a consumer is willing to exchange one good for another while maintaining the same level of satisfaction. Initially, a consumer is willing to give up more of one good to get an additional unit of another good, but as the consumer gets more of the second good, the marginal utility of that good decreases, and the consumer is willing to give up less of the first good to get an additional unit of the second good.
As a result, the indifference curve is bowed inwards towards the origin because the MRS decreases as the consumer moves down the curve. The curvature of the indifference curve is steeper at the top and becomes flatter towards the bottom.
Conclusion
In conclusion, the property of an indifference curve is that it is convex to the origin due to the diminishing marginal rate of substitution.
An indifference curve is a graphical representation of different combinations of two goods that give a consumer the same level of satisfaction or utility. The following is a property of an indifference curve:
Convexity to the Origin
The indifference curve is convex to the origin, which means that it is bowed inwards towards the origin. This property is due to the diminishing marginal rate of substitution (MRS), which indicates that as a consumer moves along an indifference curve, the MRS of one good for another good decreases.
The MRS is the rate at which a consumer is willing to exchange one good for another while maintaining the same level of satisfaction. Initially, a consumer is willing to give up more of one good to get an additional unit of another good, but as the consumer gets more of the second good, the marginal utility of that good decreases, and the consumer is willing to give up less of the first good to get an additional unit of the second good.
As a result, the indifference curve is bowed inwards towards the origin because the MRS decreases as the consumer moves down the curve. The curvature of the indifference curve is steeper at the top and becomes flatter towards the bottom.
Conclusion
In conclusion, the property of an indifference curve is that it is convex to the origin due to the diminishing marginal rate of substitution.
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Which of the following is a property of an indifference curve?a)it is ...
IC IS CONVEX TO THE POINT OF ORIGIN BCUSE OF diminishing MRS..
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Which of the following is a property of an indifference curve?a)it is convex to the origin.b)the marginal rate of substitution is constant as you move along an indifference curve.c)marginal utility is constant as you move along an indifference curve.d)total utility is greatest where the 45 degree line cuts the indifference curve.Correct answer is option 'A'. Can you explain this answer?
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Which of the following is a property of an indifference curve?a)it is convex to the origin.b)the marginal rate of substitution is constant as you move along an indifference curve.c)marginal utility is constant as you move along an indifference curve.d)total utility is greatest where the 45 degree line cuts the indifference curve.Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following is a property of an indifference curve?a)it is convex to the origin.b)the marginal rate of substitution is constant as you move along an indifference curve.c)marginal utility is constant as you move along an indifference curve.d)total utility is greatest where the 45 degree line cuts the indifference curve.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is a property of an indifference curve?a)it is convex to the origin.b)the marginal rate of substitution is constant as you move along an indifference curve.c)marginal utility is constant as you move along an indifference curve.d)total utility is greatest where the 45 degree line cuts the indifference curve.Correct answer is option 'A'. Can you explain this answer?.
Which of the following is a property of an indifference curve?a)it is convex to the origin.b)the marginal rate of substitution is constant as you move along an indifference curve.c)marginal utility is constant as you move along an indifference curve.d)total utility is greatest where the 45 degree line cuts the indifference curve.Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following is a property of an indifference curve?a)it is convex to the origin.b)the marginal rate of substitution is constant as you move along an indifference curve.c)marginal utility is constant as you move along an indifference curve.d)total utility is greatest where the 45 degree line cuts the indifference curve.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is a property of an indifference curve?a)it is convex to the origin.b)the marginal rate of substitution is constant as you move along an indifference curve.c)marginal utility is constant as you move along an indifference curve.d)total utility is greatest where the 45 degree line cuts the indifference curve.Correct answer is option 'A'. Can you explain this answer?.
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Which of the following is a property of an indifference curve?a)it is convex to the origin.b)the marginal rate of substitution is constant as you move along an indifference curve.c)marginal utility is constant as you move along an indifference curve.d)total utility is greatest where the 45 degree line cuts the indifference curve.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Which of the following is a property of an indifference curve?a)it is convex to the origin.b)the marginal rate of substitution is constant as you move along an indifference curve.c)marginal utility is constant as you move along an indifference curve.d)total utility is greatest where the 45 degree line cuts the indifference curve.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Which of the following is a property of an indifference curve?a)it is convex to the origin.b)the marginal rate of substitution is constant as you move along an indifference curve.c)marginal utility is constant as you move along an indifference curve.d)total utility is greatest where the 45 degree line cuts the indifference curve.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
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