A consumer with convex indifference curves moves along her budget line, closer a

Question

A consumer with convex indifference curves moves along her budget line, closer and closer to the horizontal axis. As she is moving

A. The marginal utility she gets from good X declines.

B. The marginal utility she gets from good Y declines.

C. The marginal utility she gets from good X increases.

D. The price ratio changes.

A. The marginal utility she gets from good X declines.

B. The marginal utility she gets from good Y declines.

C. The marginal utility she gets from good X increases.

D. The price ratio changes.

Explanation / Answer

Option A

The marginal utility she gets from good X declines

The convex indifference curve itself represents diminishing marginal utility.

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