[discussion_vu] Re: (NVU) ECO 402

(text book reference p-24)

Indifference curves are convex because as more of one good is consumed,

a consumer would prefer to give up fewer units of a second good to get additional units of the

first one.Consumers prefer a balanced market basket.

29. Indifference curves are convex to the origin because of: Select correct option:

Transitivity of consumer preferences.

 The assumption of a diminishing marginal rate of substitution.

 The assumption that more is preferred to less. 

 The assumption of completeness

am i rite?

On Fri, Dec 3, 2010 at 3:42 AM, Bilal Aziz <belal.azez@gmail.com> wrote:

1. Which of the following will cause the demand curve for butter to shift to the left? Select correct option: 

An increase in the price of the butter. 

A decrease in consumers' incomes. 

An increase in the price of margarine (a substitute). 

All of the given options

am i rite?

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