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Question
If Marginal Rate of Substitution is increasing throughout, the Indifference Curve will be: (Choose the correct alternative)
a. Downward sloping convex
b. Downward sloping concave
c. Downward sloping straight line
d. Upward sloping convex
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Solution
Downward sloping concave
Assume that the marginal rate of substitution is increasing throughout; the indifference curve would be a downward sloping concave because the consumer can get higher marginal utility from each additional unit of output.
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