Indifference Curve Convexity and Slope
Indifference curves are generally depicted as convex to the origin. This shape reflects the concept of the Diminishing Marginal Rate of Substitution (MRS).
The slope of an indifference curve represents the MRS. The MRS indicates how much of one good (e.g., good Y) a consumer is willing to sacrifice for one additional unit of another good (e.g., good X), while remaining equally satisfied.
Consider movement along a standard indifference curve:
- Moving down and to the right signifies consuming more of good X and less of good Y.
- To get an additional unit of X, the consumer is willing to give up progressively less of good Y.
- This means the absolute value of the negative slope $| \frac{dY}{dX} |$ decreases.
- Consequently, the algebraic value of the slope, which is negative, increases (becomes less negative, e.g., moving from -3 to -2).
Therefore, the property of convexity implies that the slope of the indifference curve increases as the consumer moves down along the curve.
The correct option is B.
Important Questions from Mixed Topic (CUET PG)
- Who was the founder of Bolshevik Communist party?
- What is the key guide to statecraft in the realist tradition?
- Chronologically arrange the events in the Cold War period.
A. Berlin Wall is constructed
B. Communist China joins the UN
C. Soviet invasion of Czechoslovakia
D. Berlin Blockade
Choose the correct answer from the options given below: Morgenthau's principles of political realism are:
A. Politics is rooted in permanent and unchanging human nature which is basically self centred, self-regarding and self-interested
B. Politics is an autonomous sphere of action and cannot therefore be reduced to morals
C. International Politics is an arena of conflicting self-interests
D. The ethics of international relations is situational ethics which is very different from private morality
Choose the correct answer from the options given below:Who among the following political thinkers consider the anarchical self help system to be a compelling factor for States to maximise their relative power positions?
