Question 2 A bowed in indifference curve reflects a consumer\'s increasing willi

Question

Question 2

A bowed in indifference curve reflects a consumer's

increasing willingness to give up a good that she has in abundance.

unwillingness to substitute one good for another.

desire to specialize in the consumption of one good over another.

decreasing willingness to give up a good that she has in abundance.

increasing willingness to give up a good that she has in abundance.

unwillingness to substitute one good for another.

desire to specialize in the consumption of one good over another.

decreasing willingness to give up a good that she has in abundance.

Explanation / Answer

Answer) a.) increasing willingness to give up a good that she has in abundance.

the slope of the indifference curve is marginal rate of substitution.the rate at which consumer is willing to trade off one good for the other. because people are ,more willing to trade away goods that they have in abundance and less ewilling to trade away goods of which they have little, the IC'S are bowed inwards.

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