Answer to Question #275828 in Microeconomics for armaan

Question

 Explain the shape of the indifference curve using diagrams. 

Answer 1

An indifference curve is a graph indicating two commodities that yield the user equal satisfaction and usage. The curves are steep on the left side and flat on the right side because of diminishing marginal utility. When a person uses a commodity in large quantity, the marginal utility from an additional good becomes lower.