Indifference curves cannot ever be concave for two goods
Indicate whether the statement is true or false
False. While indifference curves are typically convex, they can be concave. This means, however, that the MRS of y for x increases as x increases. That is, the consumer places greater value on the next x the more x she has. The interpretation is that a consumer with concave indifference curves prefers to specialize in either x or y but not have a mix of both.
Economics
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The price that we observe in the market is
A) the law of demand. B) a substitute. C) the money price. D) the relative price.
Economics
Which of the following is NOT a motive for holding money?
a) the transaction motive b) the speculative motive c) the asset motive d) all of the above are motives for holding money
Economics