Indifference curves are __________ to the origin, representing marginal substitution.
Last updated Jun 23, 2026
Correct Answer:
Option B —
Convex
Why Indifference Curves are Convex
The convexity of the indifference curve to the origin is a fundamental property caused by the Law of Diminishing Marginal Rate of Substitution (MRS).
Marginal Rate of Substitution (MRS): This is the rate at which a consumer is willing to give up one good (e.g., Good Y) to obtain an extra unit of another good (e.g., Good X) while maintaining the same level of utility.
The Diminishing Effect: As a consumer gets more and more of Good X, their craving for it decreases, and they become less willing to sacrifice units of Good Y to get even more X.
Visual Representation: Because the MRS declines as we move down along the curve, the slope of the curve becomes flatter, creating a convex shape (bowed inward toward the origin).
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.
