Explain three properties of indifference curves. - Vidyadip

Question

Explain three properties of indifference curves.

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Answer

The Three properties of IC are:

An IC slope downwards from left to right:

It is because to consume more quantity of one good, some quantity of the other goods must be reduced because the utility level remains the same.

An IC is convex towards origin:

It is because MRS declines as more is consumed of one good.

An IC to the right represents higher level of satisfaction:

It is because an IC to the right shows more units of goods consumed and more units of goods consumed are assumed to have more utility.

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