Indifference Curves Tend to Be Convex Because ________

question 58

Multiple Choice

Indifference curves tend to be convex because ________.

• A)they are bowed inwards toward the origin
• B)consumers dislike large fluctuations in consumption from one period to the next
• C)of the gap between real and nominal interest rates
• D)the marginal rate of substitution exceeds the price effect