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Theory of consumer behaviour — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsTheory of consumer behaviour3 Marks
Question
Can an Indifference Curve be concave to the origin, if so then when?
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Answer

An Indifference Curve can be concave to the origin only when Marginal Rate of Substitution (MRS) is rising, i.e. a consumer is willing to sacrifice greater and greater units of the other good (say Y) for every additional unit of good X. This generally happens in case of economic bad goods (such as liquor, tobacco, cigarettes, etc).

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