Q. 135.0( 1 Vote )

Explain three pro

Answer :

Indifference curve is the locus of all points among which the consumer is indifferent.

The three properties of indifference curves are:


a) An indifference curve is convex to the origin to the marginal rate of substitution decreases as more of one good is consumed.


b) An indifference curve slopes downward from left to right because to consume more of good X, a consumer has to reduce his consumption of good Y so that the utility level remains the same.


c) An indifference curve to the right represents a higher level of satisfaction because it shows more units of goods consumed. Moreover, more units are consumed to have more utility.


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