Answer to Question #211192 in Microeconomics for Umema

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) False

indifference curves usually slopes from left towards right, downwards, therefore it has negative slope. always slopes downward from left to right, i.e. it has a negative slope.

b) False

The indifference curves are not able to intersect. This is based on the fact that at the tangency point, higher curve usually provides more of the 2 provided commodities as provided by lower indifference curve, hence it is impossible.

c). True

Indifference curve are convex to the origin. While consumer substitutes product X for Y, marginal substitution rate usually diminish as X for the Y at the indifference curve.