Question

i. Why Indifference curve of a rational consumer cannot be parallel to x-axis and y-axis?

Answer 1

This is because; almost all lines in the indifferent curves will be curving as they come towards inside of the center which is described as the convex. The curvature clearly demonstrates that when the quantity of one particular product in the market rises up at the expense of another one, then there will be diminishing returns on the overall utility per unit.