Economy, asked by junned38, 1 year ago

If IC is not convex at the point of equilibrium, the consumer cannot reach the point of stable equilibrium. Comment​

Answers

Answered by Anonymous
6

Answer:

True, If IC is not convex at the point of equilibrium the consumer cannot reach the point of stable equilibrium, in case IC is concave it pretend that marginal utility continue to rise

Answered by auictbmch
6

Explanation:

If IC is not convex at the point of equilibrium , the consumer cannot reach the point of stable equilibrium . (Q2) It is because of monotonic preference of the consumer that IC slopes downward . ... (Q9) An indifference curve is convex to the origin because of the law of equi-marginal utility.

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