Question

What is indifference curve? what are the properties of indifference curves?

Answer 1

Indifference Curve:
Indifference Curve represents the different combination of two economic goods that give equal satisfaction and utility to the customers. It is the graphical representation of different combinations of goods which is generally two, for which the customers are indifferent.
Properties of Indifference Curve:
• Indifference curves slope downwards from the Left to the right. This property implies that it has a negative slope. • Indifference curves are generally convex to the origin of the axes.• Every Indifference curve to the right represents a higher level of satisfaction than proceeding one.• These curves cannot touch or intersect each other. Hence one curve passes through only one point on an indifference map.• These curves cannot touch or intersect each other. Hence one curve passes through only one point on an indifference map.

Answer 2

Answer:

Definition: 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