The assumption which makes the "Indifference Curve" convex to the origin is?
کون سا مفروضہ انڈیفرینس کرو کو اصل کی طرف محدب بناتا ہے؟
- Cardinality of utility
- A diminishing Marginal Rate of substitution
- Originally of utility
- None of these
Explanation
- An indifference curve shows combinations of two goods giving the same satisfaction.
- It is convex to the origin because of the diminishing marginal rate of substitution (MRS).
- As a consumer substitutes one good for another, the willingness to substitute decreases.
- This reflects normal consumer behavior and balanced preferences.
Last verified on 22-04-2026
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