properties of indifference curve
Answers
Properties of indifference curve :-
♥ They are always convex to the origin .
♥ They slope downwards .
♥ They represent higher levels of satisfaction .
♥ They can never intersect each other .
Solution!!
Properties of Indifference Curve (IC):-
→ In the case of multiple indifference curves given, the IC on the right represents a higher level of satisfaction than the IC on the left or you may say it as the higher the IC curve, the higher satisfaction it represents.
→ As stated in the above point that higher IC represents a higher level of satisfaction, this also means that the indifference curves cannot intersect at any point. The result will be contradictory if they intersect.
→ We know that the IC analysis is based on the ordinal utility analysis. It assumes the consumption of two goods. As a result, IC never touches the x-axis or the y-axis.
→ IC has a negative slope which means that if a consumer wants to have more of a particular good, he will have to decrease the number of units of another good to maintain the exact level of satisfaction. This means that the IC slopes downwards.