Question

Show that indifference curve are concave consumer will consume only one of two goods..​

Answer 1

Answer:

The assumptions are as follows,

The consumer is rational. Also, he possesses full information about all the relevant aspects of the economic environment in which he lives.

The consumer can rank a combination of goods based on the satisfaction they yield. However, he can’t quantitatively express how much he prefers a certain good over the other.

If a combination X has more commodities than the combination Y, then X is preferred over Y.