Which of the followings are the properties of Indifference Curve ? A. Indifference curve slopes…
In ordinal utility analysis, standard properties of Indifference Curves are: (A) an indifference curve slopes downward from left to right (negative slope); (C) an…
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Which of the followings are the properties of Indifference Curve ?
A. Indifference curve slopes downward to right
B. Indifference curve is concave to origin
C. Indifference curve is convex to origin
D. Indifference curves cannot intersect each other but can be tangent to each other
E. Higher indifference curve represents higher level of satisfaction
Answer and explanation
Correct answer C
In ordinal utility analysis, standard properties of Indifference Curves are: (A) an indifference curve slopes downward from left to right (negative slope); (C) an indifference curve is strictly convex to the origin due to diminishing marginal rate of substitution (MRS); and (E) a higher indifference curve represents a higher level of consumer satisfaction. Statements B (concave) and D (tangent to each other) are false (A, C and E only).
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UGC NET Commerce