7. Convexity of indifference curves implies that ) the marginal rate of substitu

Question

7. Convexity of indifference curves implies that ) the marginal rate of substitution of a good decreases as the consumer moves along the indifference curve ) the total utility decreases as the consumer moves downward along the indifference curve C) the marginal utility along the indifference curve remains constant D) the total utility increases as the consumer moves downward along the indifference curve 8. Perfect complements are associated with indifference curves. t A) U-shaped B) straight-line C) convex -D) L-shaped

Explanation / Answer

7. Decreasing MRS along the indifference curve is the explanation for indifference curve being convex to origin

OPTION A

8. Perfect complements have L shaped indifference curves,

OPTION D

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