Question
Define an Indifference Curve. Why is it convex to the origin?

Answer

An Indifference Curve is the curve, which represents all those combinations of two commodities, which give same level of satisfaction to a consumer. Indifference Curves are convex to the point of origin because of diminishing Marginal Rate of Substitution. We can say that for every additional unit of a good X, a consumer is willing to sacrifice less and less amount of another good Y because of the application of the Law of Diminishing Marginal Utility.

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