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Theory of consumer behaviour — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsTheory of consumer behaviour3 Marks
Question
Define an indifference curve. Explain why an indifference curve is downward sloping from left to right?
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Answer

Indifference curve shows different combinations of good X and good Y which give same level of satisfaction to the consumer. Indifference curve slopes downward from left to right because whenever a consumer wants to have more units of one commodity, he will have to sacrifice some units of the other commodity. If the consumer can have more of both the commodities his level of satisfaction will change which is not possible. Thus, there exists a negative relationship between quantity of X and quantity of Y.

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