Why ic convex to its origin
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Heya....
IC is convex to the origin because....
--- Decline in marginal rate of substitution...
Means....
As we sacrifice one good for other then our willingness to sacrifice the old good reduces but again we want to get new one...It creates the declined MRS....
IC is convex to the origin because....
--- Decline in marginal rate of substitution...
Means....
As we sacrifice one good for other then our willingness to sacrifice the old good reduces but again we want to get new one...It creates the declined MRS....
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Reasons for need of environment friendly economic growth: (i) Present production technology has polluted atmosphere and water bodies with garbage, smoke and poisonous gases. (ii) Rapid economic growth and industrialisation have led to reckless exploitation of natural resources (like fossil fuels).
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