If an indifference curve were concave instead of convex to the origin, what implication would that have if the consumer reduces consumption of one good but still wants to enjoy the same level of utility in a two-good world?
What will be an ideal response?
Essentially it would mean that the consumer would not need as much of the second good to compensate him for his reduction in the consumption of the first good.
Economics
You might also like to view...
From an economists' perspective, which of the following observations is not true? a. Self-interest is purely monetary in nature
b. Self-interest can include benevolence. c. Self-interest is a good predictor of human behavior in most situations. d. Self-interest is not the same as selfishness.
Economics
Specialization of labor can result in output increasing at an increasing rate
Indicate whether the statement is true or false
Economics