What is indefference curve? explain the basic properties of indefference curve .why two indefference curves cannot intersect ?what if in defference curve is up word sloped? what if in defference curve touch vertical or horizontal axis
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Answer:
An indifference curve is a graph showing combination of two goods that give the consumer equal satisfaction and utility. Each point on an indifference curve indicates that a consumer is indifferent between the two and all points give him the same utility.
The indifference curves cannot intersect each other. It is because at the point of tangency, the higher curve will give as much as of the two commodities as is given by the lower indifference curve. ... Similarly the combinations shows by points B and E on indifference curve IC1 give equal satisfaction top the consumer.
Each indifference curve shows the combinations of the 2 goods that yield the same level of satisfaction. ... In sum, yes it is posible for indifference curve to slope upwards; this is when one product generates negative utility. The equilibrium is likely to be a corner solution.
An indifference curve represents various combinations of two commodities. If an indifference curve touches horizontal axis or vertical axis, it implies that the customer prefers only one commodity because when it touches axes, one of the commodities becomes zero quantity.
Explanation:
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Therefore, if two indifference curves were to cross, they would both have to provide the consumer with the same level of lndifference curves cannot intersect each other. These two indifference curves represent two different If an indifference curve touches horizontal axis or vertical.
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