Explain why an indifference curve to the right shows higher utility level.
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An indifference curve(IC) shows different combination of two goods that gives equal level of satisfaction to a consumer. An IC to the right shows higher level of satisfaction as points on higher IC either shows more of one good with no less of the other or more of both goods. Such consumption bundles are more preferable to a consumer.
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Heya...
Indifference curve is the curve that showing the combination of two goods that gives the equal level of satisfaction......
Yeah , at the right side the first IC shows higher level of Utility...
Reason :-
Because at this side the more goods are involved in the combination and according to monotonic Preferences it gives high Utility..
Thank you
Indifference curve is the curve that showing the combination of two goods that gives the equal level of satisfaction......
Yeah , at the right side the first IC shows higher level of Utility...
Reason :-
Because at this side the more goods are involved in the combination and according to monotonic Preferences it gives high Utility..
Thank you
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