Three properties or Characteristics of indifference curve are. (i) Sloping downwards from left to right : The curve is negatively sloped because to obtain more quantity of one good the consumer must give up some quantity of the other good in order to remain at the same utility level the curve represents.
What is indifference curve explain the characteristics of indifference curve?
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.
What is indifference curve and what are its properties?
Definition: An indifference curve is a convex shaped curve depicting the graphical representation of the different combinations deriving the same level of satisfaction to the consumer by considering two commodities. Each of which gives the same level of satisfaction to the consumer.
What are the properties of indifference curve with diagram?
Top 6 Properties of Indifference Curve (With Diagram)
- They Slope Negatively or Slope Downwards from the Left to the Right:
- They are Convex to the Origin of Axes:
- Every Indifference Curve to the right represents Higher Level of Satisfaction than that of the Proceeding One:
What is an example of indifference?
The definition of indifference is a lack of care, concern or interest. An example of indifference is when you don’t care or put effort into something. noun. 1. The state of being indifferent.
What are the four properties of indifference curves?
Four Properties of Indifference Curves 1. Indifference Curves are Downward Sloping 2. Higher Indifference Curves Are Preferred to Lower Ones 3. Indifference Curves Cannot Intersect 4. Indifference Curves are convex (i.e. bowed inward) In a Nutshell
Can a consumer be indifferent on an indifference curve?
As the consumer moves along the indifference curve he is getting a fixed quantity of y but increasing quantities of x. So the consumer cannot be indifferent, as having rational behavior, he would prefer D more than C, C more than B and B more than A and the level of satisfaction is not the same.
Why is an indifference curve cannot be vertical?
Similarly, an indifference curve cannot be vertical as shown in the figure, as in point D, the consumer gets more of y commodity than at point C, B or A while the x commodity remains constant; so the consumer cannot be indifferent to various combinations as they denote different satisfactions.
How are indifference curves related to total satisfaction?
As we know, all combinations of good A and good B that lie on the same indifference curve make the consumer equally happy. Therefore, if two indifference curves were to cross, they would both have to provide the consumer with the same level of total satisfaction, because the exact point where they intersect (i.e., point A) is on both curves.
