At the point of equilibrium, IC must be convex to the origin. Why?
Ria,
The Indifference curve must be convex to the origin for a consumer to attain equilibrium because the convex shape of Indifference curve implies falling marginal rate of substitution which is necessary to attain for a consumer to attain maximum satisfaction, and hence, equilibrium.
The Indifference curve must be convex to the origin for a consumer to attain equilibrium because the convex shape of Indifference curve implies falling marginal rate of substitution which is necessary to attain for a consumer to attain maximum satisfaction, and hence, equilibrium.