Question

Explain any two properties of indifference curve?​

Answer 1

Indifference Curve is a graphical representation of combinations of two bundles of goods among which the consumer is different / derives the same level of satisfaction from all bundles.

properties :

1. All points on an IC curve denote the same level of satisfaction.

Suppose a Point A and Point B lies on the same IC1 , then the two points denote the same level of satisfaction.

2. Two IC curves cannot intersect each other.

since two different IC curve represent different level of satisfaction, the two IC curves cannot intersect each other.

Answer 2

Indifference curves are graphs that show different pairings of two commodities that a person would value equally.

• Indifference curves' axes each show a single commodity (e.g., good A and good B).
• Microeconomics frequently employs indifference curves to examine customer preferences, the effects of subsidies and taxes, as well as a few other ideas.

Properties of Indifference Curve

1. Indifference Curves are Downward Sloping

• The slope of the indifference curve depicts the rate at which an individual is ready to exchange some good A for more excellent B.
• The majority of indifference curves have a negative slope or a decreasing slope from left to right.
• A downward-sloping curve represents the relationship between good A and good B.

     2. Higher Indifference Curves Are Preferred to Lower Ones

• A higher indifference curve will always be preferred by consumers over a lower one.
• This results from the fundamental economic notion that "more is always better."
• According to basic economic theory, we might assume that customers favor larger amounts. The indifference map visually illustrates this.
• The higher the indifference curves are, the larger the quantities of both goods. The curve gets more desirable as a result.