Concept of Convex Preference (With Diagram)
In this article we will discuss about the concept of convex preference with the help of diagram. One of the axioms that define the features of well-behaved indifference curves (ICs) is that averages are preferred to extremes. This is, in short, the concept of convex preference. That is, take two combinations of goods X and Y, viz., (x1, y1 and [...]