Explain why is an indifference curve is Convex.
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.