Answer to Question #97915 in Microeconomics for mehwish ibrar

Question

when indifference curve is downward slope and upward slope

Answer 1

• Indifference curve displays a blend of two goods providing the user with equal satisfaction and utility. Normally indifference curves are sloped downward.
• Indifference curve downward slope: if satisfaction consumption of one product increase, then other product’s consumption will decrease. Any point on the curve shows the different utility combination of the two products.

• Indifference curve upward slope: when consumer have negative or decreasing utility for one product and consumption or utility of another good will increase, indifference curve will slope upward. Eg: bad threat of the product, advises from a doctor.