Question

Define indifference curve? Write its properties.

Answer 1

An indifference curve is a graph showing combination of two goods that give the consumer equal satisfaction and utility. Each point on an indifference curve indicates that a consumer is indifferent between the two and all points give him the same utility.

: (1) Indifference curves are downward sloping, (2) higher indifference curves are preferred to lower ones,
(3) indifference curves cannot intersect, and (4) indifference curves are convex (i.e. bowed inward).