Question

properties of an IC curve

Answer 1

Answer:

Eya❤

Properties of Indifference Curve:

⚱Indifference curves are always convex to the origin: ⚱An indifference curve is convex to the origin because of diminishing MRS. ...

⚱Indifference curve slope downwards: ...

⚱Higher Indifference curves represent higher levels of satisfaction: ...

⚱Indifference curves can never intersect each other:

Answer 2

$\huge\mathcal\red{H£¥¥A!}$

_________________________________

Properties of Indifference Curve:

_________________________________

✏️1. Indifference curves are always convex to the origin:

An indifference curve is convex to the origin because of diminishing MRS. MRS declines continuously because of the law of diminishing marginal utility. when the consumer consumes more and more of apples, his marginal utility from apples keeps on declining and he is willing to give up less and less of bananas for each apple. Therefore, indifference curves are convex to the origin It must be noted that MRS indicates the slope of indifference curve.

✏️2. Indifference curve slope downwards:

It implies that as a consumer consumes more of one good, he must consume less of the other good. It happens because if the consumer decides to have more units of one good (say apples), he will have to reduce the number of units of another good (say bananas), so that total utility remains the same.

✏️3. Higher Indifference curves represent higher levels of satisfaction:

Higher indifference curve represents large bundle of goods, which means more utility because of monotonic preference. Consider point ‘A’ on ICX and point ‘B’ on IC2 combination (OS, OP). As OS > OR, the consumer gets more satisfaction at IC2.

✏️4. Indifference curves can never intersect each other:

As two indifference curves cannot represent the same level of satisfaction, they cannot intersect each other. It means, only one indifference curve will pass through a given point on an indifference map.

Similarly, points A and C on IC2 also give the same level of satisfaction. It means, points B and C should also give the same level of satisfaction. However, this is not possible, as B and C lie on two different indifference curves, IC1 and IC2 respectively and represent different levels of satisfaction. Therefore, two indif­ference curves cannot intersect each other.