Question

If the indifference curve were horizontal, this would mean that the consumer is saturated with

Answer 1

Answer:

The indifference curve cannot be horizontal. It is always convex to the surface of the origin.

The slope of an indifference curve is negative, downward sloping, and from left to right. It means that the consumer to be indifferent to all the combinations on an indifference curve must leave less units of good Y in order to have more of good X.

Therefore, an indifference curve cannot slope upward from left to right. It is not an iso-utility curve.

So an indifference curve cannot be horizontal. An indifference curve cannot be vertical either.

Thankyou.