Answer to Question #85121 in Microeconomics for Ayanda Lubisi

Question

If an indifference curve is convex from above (bowed out), which of the following
statements would be true?

1. The more you have of a good, the less you desire additional units of the good.
2. The less you have of a good, the more intense your desire for more of it.
3. The more you have of a good, the more intense your desire for more of it.
4. This type of indifference curve violates the more-is-better-than-less assumption
underlying indifference curves.

Answer 1

If an indifference curve is convex from above (bowed out), the more you have of a good, the less you desire additional units of the good.

So, the correct answer is 1.