Question

In the following Question, read the following statement: Assertion (A) and Reason (R). Choose the correct alternative among those given below:

Assertion (A): An Indifference curve is always convex to the origin.

Reason (R): MRS is always diminishing because of the law of diminishing marginal utility.

Options

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) is True but Reason (R) is False.

• Assertion (A) is False but Reason (R) is True.

Answer 1

Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).

Explanation:

Both statements are true. Diminishing MRS means that the consumer sacrifices fewer units of one good for successive units of the other, making the indifference curve convex to the origin. Therefore, (a) is correct; the other options incorrectly describe the truth or explanatory relationship.