Question

10) Convexity of indifference curves implies that consumers are willing to A) settle for less of both "x" and "y". B) give up more "y" to get an extra "x" the less "x" they have. C) acquire more "x" only if they do not have to give up any "y". D) give up more "y" to get an extra "x" the more "x" they have

Answer 1

The correct answer is the option B: give up more "y" to get an extra "x" the less "x" they have.

Step-by-step explanation:

To begin with, the indifference curves are the ones that show the relationship that exists between two goods and its how much the consumer values its consumptions becuase it indicates how much of a good is able to lose in order to obtain more of the other. These indifference curves have certain characteristics and conditions, one of them is the fact that they are always convex. And that is because they will show how much of a good they will be able to lose in order to get an extra of the other good that they have less of it.