Answer to Question #257091 in Economics for shuru

Question

what is indifference curve explain with the help of diagram and also explain its properties

Answer 1

Indifference curves properties:

An indifference curve located above another curve characterizes

higher level of utility;

- indifference curves for ordinary goods always have a negative slope;

- usually have a concave shape due to decreasing marginal rates of substitution;

- indifference curves never intersect;

- sets of benefits on curves more distant from the origin of coordinates are more preferable than a set of benefits located on curves less distant from the coordinates.