Question

What is Indifference Curve, explain with the help of diagram and also explain its properties.

Answer 1

An indifference curve refer to a contour line where utility remains constant across all points on the line. It is represented by a line drawn between different consumption bundles, on a graph charting the quantity of two goods.

The 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.

4. indifference curves are convex.