Answer to Question #211058 in Microeconomics for Arwah Bashir

Question

Q2) With the help of diagrams explain the following that whether these are false or true regarding the indifference

curves.

a) Indifference curves are positively slope.

b) Indifference curves can intersect.

c) Indifference curves are concave to the origin.

Answer 1

a) Indifference curves are positively slope- True

This is true for indifference curves of of two goods( one that a consumer loves and the other one hates ) So the more quantity of good commodity the consumer purchases, there is some quantity of the bad good.

In this case the indifference curve is positively sloped.

b)Indifference curves can intersect

FALSE.

when indifference curves intersect it means that there will be optimal allocations along different points in the graph which is not possible.

c) Indifference curves are concave to the origin.

FALSE

Indifference curves are normally convex to the origin as shown below