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Question
If Marginal Rate of Substitution is increasing throughout, the Indifference Curve will be ______.
(Choose the correct alternative)
Options
Downward sloping convex
Downward sloping concave
Downward sloping straight line
Upward sloping convex
MCQ
Fill in the Blanks
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Solution
If Marginal Rate of Substitution is increasing throughout, the Indifference Curve will be downward sloping concave.
Explanation:
Increasing MRS means the slope’s absolute value increases as the consumer substitutes one good for the other. This produces a downward-sloping concave indifference curve.
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