Question

When indifference curves are __________, consumers are more inclined to trade __________.
Use letters in alphabetical order to select options.
A. straight lines; away goods of which they have little
B. right angles; away goods of which they have little
C. bowed out; away goods that they have in abundance
D. bowed in; away goods that they have in abundance

Answer 1

Answer:

Correct option is D.

bowed in; away goods that they have in abundance

Explanation:

When indifference curves are bowed in, consumers are more inclined to trade away goods that they have in abundance.

Goods are in abundance are traded by consumer and less are kept for themselves so the indifference curve is bowed in.