What are the 5 properties of indifference curve?
Characteristics of Indifference Curves
- Indifference curves slop downward to the right.
- Every indifference curve to the right represents a higher level of satisfaction.
- Indifference curves cannot intersect each other.
- Indifference curve will not touch the axis.
- Indifference curves are convex to the origin.
What is indifference curve and explain its properties?
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 an indifference curve in economics?
An indifference curve shows a combination of two goods that give a consumer equal satisfaction and utility thereby making the consumer indifferent. Along the curve, the consumer has an equal preference for the combinations of goods shown—i.e. is indifferent about any combination of goods on the curve.
What do you mean by indifference curve explain any three properties of indifference curve?
The indifference curve slopes downward. 2. The indifference curve is convex towards the origin. 3. Higher indifference curve represents higher utility.
What is indifference curve and its properties with diagram?
Some of the properties are: 1. They Slope Negatively or Slope Downwards from the Left to the Right 2. They are Convex to the Origin of Axes 3. Every Indifference Curve to the right represents Higher Level of Satisfaction than that of the Proceeding One and Others.
What are indifference curve give its assumptions and properties?
“It is the locus of points representing pairs of quantities between which the individual is indifferent, so it is termed an indifference curve.” It is, in fact, an iso-utility curve showing equal satisfaction at all its points. A single indifference curve concerns only one level of satisfaction.
What are the main properties of indifference curve?
The four properties of indifference curves are: (1) indifference curves can never cross, (2) the farther out an indifference curve lies, the higher the utility it indicates, (3) indifference curves always slope downwards, and (4) indifference curves are convex.
What is indifference curve write any two properties of indifference curve?
There are four important properties of indifference curves that describe most of them: (1) They are downward sloping, (2) higher indifference curves are preferred to lower ones, (3) they cannot intersect, and (4) indifference curves are convex (i.e. bowed inward).
What is IC and its properties?
What are the main properties of an indifference curve for two normal goods?
What are the features of an indifference curve?
The very important feature of the indifference curves is that they are convex to the origin and they cannot be concave to the origin. A normal indifference curve will be convex to the origin and it cannot be concave. Only convex curves will lend to the principles of Diminishing Marginal Rate of substitution.
What are types of indifference curve?
Indifference curve will not touch the axis. Another characteristic feature of indifference curve is that it will not touch the X axis or Y axis. This is born out of our assumption that the consumer is considering different combinations of two commodities.
Which of the following is a property of an indifference curve?
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
Why are indifference curves cannot intersect each other?
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. This is absurd and impossible.