Question

tick the correct answer
*Assertion(A): Indifference curves always convex to the origin.
Reason(R): Diminishing MRS which in turn occur due to Law of diminishing marginal utility.

a. Assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b. . Assertion (A) and reason (R) are true and reason (R) is not the correct explanation of assertion (A).
c. Assertion (A) is true but reason (R) is false.
d. Assertion (A) is false but reason (R) is true.​

Answer 1

Answer:

B is the answer

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Answer 2

Answer:

a) Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of assertion (A).

Explanation:

Assertion(A): Indifference curves are always convex to the origin

• An indifference curve depicts a combination of two items that provide equal satisfaction and usefulness to the customer, causing the consumer to be indifferent.
• The customer has an equal preference for the combinations of items depicted along the curve, i.e. is indifferent to any combination of commodities on the curve.
• The lack of interest Because of the diminishing MRS, the curve is convex to the origin (Marginal rate of substitution).
• The curve reflects the marginal substitution rate.
• This makes the Assertion true.

Reason(R): Diminishing MRS which in turn occurs due to the Law of diminishing marginal utility.

• As MRS decreases, the consumer trades less and less of Good-Y for each new unit of Good-X.
• Because growing consumption of Good-X causes a decrease in its MU, whereas declining consumption of Good-Y causes an increase in its MU.
• The idea of declining pricing is intimately related to the law of diminishing marginal utility.
• As a product's usefulness reduces with increased consumption, consumers are prepared to pay lower dollar amounts for more of the commodity.
• This makes the reason true.

The Reason does justify as the Indifference curve is convex due to diminisihing MRS and diminishing MRS has a direct relationship with Marginal Utility.

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