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Examveda

Indifference curves are convex to the origin because

A. Two goods are perfect substitutes

B. Two goods are imperfect substitutes

C. Two goods are perfect complementary goods

D. None of the above

Answer: Option B

Solution(By Examveda Team)

Indifference curves are convex to the origin because two goods are imperfect substitutes.

This Question Belongs to Commerce >> Economics

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Related Questions on Economics

Which among the following statement is INCORRECT?

A. On a linear demand curve, all the five forms of elasticity can be depicted

B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.

C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.

D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.